Is festival gift from an employer included/excluded in national income?
Is festival gift from an employer included/excluded in national income?
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No,
It will not be included in the national income as it is merely a transfer payment.
Explanation:-
A Festival gift from an employer to the employees is a unilateral transfer.
The employees do not provide any factor services in return.
Thus, it does not add to the current flow of goods and services in the economy.
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