Estimate the missing values (?), if the value of Gross Domestic Product at factor cost (GDP_fc) by Expenditure Method and Income Method is Rs. 370 crore :

Question

Accepted Answer

Given: GDP_FC = Rs. 370 crore (by both methods)

From the table:
(i) COE = 175
(ii) PFCE = 210
(iii) Employer's PF contribution = 50 (part of COE, already included in 175)
(iv) NIT = 20
(v) Net Exports = -20
(vi) GFCE = ?
(vii) Operating Surplus = ?
(viii) GFCF = 70
(ix) Mixed Income = 40
(x) Change in Stock = 60
(xi) Depreciation = 70

Expenditure Method:
GDCF = GFCF + Change in Stock = 70 + 60 = 130
GDP_MP = PFCE + GFCE + GDCF + Net Exports = 210 + ? + 130 + (-20) = 320 + ?
GDP_FC = GDP_MP - NIT = 320 + ? - 20 = 300 + ?
370 = 300 + ? => GFCE = Rs. 70 crore

Income Method:
NDP_FC = COE + Operating Surplus + Mixed Income = 175 + ? + 40 = 215 + ?
GDP_FC = NDP_FC + Depreciation = 215 + ? + 70 = 285 + ?
370 = 285 + ? => Operating Surplus = Rs. 85 crore