Is Expenditure on improvement of fixed capital asset included/excluded in national income?
Is Expenditure on improvement of fixed capital asset included/excluded in national income?
Anurag Pathak Changed status to publish December 9, 2023
Yes,
It will be included in the national income as it is a part of capital formation.
Explanation:-
improvement of fixed assets increases the life span of the fixed asset.
It is the addition of the current stock of capital during a year. It is called gross domestic capital formation.
Domestic capital formation is added to the national income through the Expenditure Method.
Anurag Pathak Changed status to publish December 9, 2023
