Is expenditure on old age pensions by government included/excluded in domestic income of India?
Is expenditure on old age pensions by government included/excluded in domestic income of India?
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No,
It is not included in the domestic factor income as it is a transfer payment.
Explanation:-
Only factor income generated within the domestic territory of India will be included in the domestic income.
old age pension is the transfer payment as the receiver does not provide any productive services against it.
It does not add any current flow of goods and services in the economy.
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