Calculate the values of Operating Surplus and Gross Domestic Product at Market Price (GDPMP) from the following data :
S. No. Particulars Amount (in ₹ crore) (i) Rent 120 (ii) Profits 200 (iii) Domestic Income 720 (iv) Mixed Income 70 (v) Wages and Salaries 300 (vi) Indirect Taxes 150 (vii) Subsidies 50 (viii) Consumption of fixed capital 200 (ix) Interest 30 (x) Dividend 120 (xi) Net factor income from abroad 20
Calculate the values of Operating Surplus and Gross Domestic Product at Market Price (GDPMP) from the following data :
| S. No. | Particulars | Amount (in ₹ crore) |
|---|---|---|
| (i) | Rent | 120 |
| (ii) | Profits | 200 |
| (iii) | Domestic Income | 720 |
| (iv) | Mixed Income | 70 |
| (v) | Wages and Salaries | 300 |
| (vi) | Indirect Taxes | 150 |
| (vii) | Subsidies | 50 |
| (viii) | Consumption of fixed capital | 200 |
| (ix) | Interest | 30 |
| (x) | Dividend | 120 |
| (xi) | Net factor income from abroad | 20 |
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Solution and Explanation
Operating Surplus is the part of domestic factor income earned by the owners of land, capital and enterprise. It is rent + profits + interest.
GDP at market price is found from Domestic Income (NDP at factor cost) by adding depreciation (consumption of fixed capital) and net indirect taxes.
Step 2: Key Formula or Approach:
1. Operating Surplus = Rent + Profits + Interest.
2. \( GDP_{MP} \) = Domestic Income + Consumption of fixed capital + (Indirect taxes - Subsidies).
Step 3: Choose the right items from the table.
Operating Surplus uses items (i) Rent = 120, (ii) Profits = 200 and (ix) Interest = 30.
Dividend is a part of profits, so it is not added again. Mixed income and wages are separate parts of domestic income.
Step 4: Calculate Operating Surplus.
\[ \text{Operating Surplus} = 120 + 200 + 30 = 350 \]
So Operating Surplus is Rs. 350 crore.
Step 5: Calculate GDP at market price.
Domestic Income = 720, Consumption of fixed capital = 200, Indirect taxes = 150, Subsidies = 50.
Net indirect taxes = 150 - 50 = 100.
\[ GDP_{MP} = 720 + 200 + (150 - 50) = 720 + 200 + 100 = 1{,}020 \]
Step 6: Check with the other side.
Wages and salaries 300 + Operating Surplus 350 + Mixed income 70 = 720, which equals the given Domestic Income. So the figures are consistent.
Net factor income from abroad (20) is not needed, because it belongs to national income and not to domestic product.
Final Answer:
Operating Surplus = Rs. 350 crore and GDP at market price = Rs. 1,020 crore. \[ \boxed{\text{OS} = 350 \text{ crore}, \; GDP_{MP} = 1{,}020 \text{ crore}} \]
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