Is festival gift from an employer included/excluded in national income?
Is festival gift from an employer included/excluded in national income?
Anurag Pathak Changed status to publish December 9, 2023
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.
Anurag Pathak Changed status to publish December 9, 2023
