Is cash transfer by government of India to the people below poverty line included/excluded in national income?
Is cash transfer by government of India to the people below poverty line included/excluded in national income?
Anurag Pathak Changed status to publish
No,
It will not be included in the national income as it is merely a transfer payment.
Explanation:-
Money transferred by government of India to the poor people is one-sided transfer.
The poor people do not provide any factor services against this payment.
Therefore, it does not add to the current flow of goods and services.
Anurag Pathak Changed status to publish
