no, because they are not payments for currently produced goods or services.
There are two components of expenditure - plan and non-plan. Of these, plan expenditures are estimated after discussions between each of the ministries concerned and the Planning Commission. Non-plan revenue expenditure is accounted for by interest payments, subsidies (mainly on food and fertilisers), wage and salary payments to government employees, grants to States and Union Territories governments, pensions, police, economic services in various sectors, other general services such as tax collection, social services, and grants to foreign governments. Non-plan capital expenditure mainly includes defence, loans to public enterprises, loans to States, Union Territories and foreign governments.
GDP can be calculated through the expenditures, income, or output approach. The expenditures approach says GDP= consumption + investment + government expenditure + exports - imports. There are a few methods used for calculating GDP, the most commonly presented are the expenditure and the income approach. The most well known approach to calculating GDP, the expenditures approach is characterized by the following formula: GDP = C + I + G + (X-M) where C is the level of consumption of goods and services, I is gross investment, G is government purchases, X is exports, and M is imports. GDP at producer price theoretically should be equal to GDP calculated based on the expenditure approach. expenditure approach (noun) The total spending on all final goods and services (Consumption goods and services (C) + Gross Investments (I) + Government Purchases (G) + (Exports (X) - Imports (M))GDP = C + I + G + (X-M). income approach (noun) GDP based on the income approach is calculated by adding up the factor incomes to the factors of production in the society. output approach (noun) GDP is calculated using the output approach by summing the value of sales of goods and adjusting (subtracting) for the purchase of intermediate goods to produce the goods sold. So in theory any benefits paid out by a Government office are taken into consideration based on the "consumer" figures. Therein, someone would use their benefits to purchase goods. However, benefits are Not directly used in the equation.
Answering "Is Social security payments received by a retired factory worker included in this year's GDP?"
GDP is the market value of all final goods and services made domestically in one year. It's different from GNP, which is the market value of all final goods and services made by a nation in one year.There are two ways to measure GDP: the expenditure and income approach.Expenditure approach:GDP = Consumption + Investment + Government + Exports - ImportsConsumption expenditures include nondurable goods (e.g. food), durable goods (e.g. automobiles), and services (e.g. haircuts by barbers). Investment expenditures include purchasing new equipment, nonresidential houses, or factories. Government expenditures include paying the military and construction workers for building public projects. Government expenditures do not include transfer payments, such as Social Security and welfare, because the people who receive the transfer payments do not offer goods or services in exchange for the transfer payments. In other words, there is no new purchase of goods or services. Exports are goods produced domestically and sold abroad. Imports are goods produced abroad and sold domestically. Imports must be subtracted because they are not made domestically.Income approach:GDP = Rents + Wages + Profits + Income + Depreciation + Indirect Business TaxThe rationale behind the income approach is that total expenditure is equivalent to the total income for households and firms received in the form of rents, wages, profits, and income. Depreciation expenditure must be included in the income approach, but not the expenditure approach, because they replace goods that are already existing. Indirect business taxes include sales taxes and excise taxes. Remember that indirect business taxes are not included in the expenditure approach, only in the income approach.
In a Three-sector economy ,along with the household sector & business sector there is government sector too.Because the government can influence on the circular flow of income in 2 ways.1.It collects taxes[=T] from households & firms,and2.it makes various payments [=G] to household & business sectors.Here taxes can be taken as a lekage & government expenditure as an injection.
DescriptionGovernment spending or expenditure includes all government consumption, investment, and transfer payments.
A balance of payments deficit means there is an imbalance in the balance of payments of a country where the payments the country makes are more than the payments they received. It means the balance of payments is negative. A balance of payments deficit is,when government expenditure is more than government revenue
Balance of payments (BoP) accounts are an accounting record of all monetary transactions between a country and the rest of the world. They include payments for the country's exports and imports of goods, services, financial capital, and financial transfers.None of the following is included.
final withholding payment are not included in calculating total income becouse are taxed on the hand of cooparation distributing payment to individual or unit of trust also has diffirent withholding tax rate
In calculating child support, all income is considered (except for public assistance or SSI).
There are two components of expenditure - plan and non-plan. Of these, plan expenditures are estimated after discussions between each of the ministries concerned and the Planning Commission. Plan expenditure forms a sizeable proportion of the total expenditure of the Central Government. The Demands for Grants of the various Ministries show the Plan expenditure under each head separately from the Non-Plan expenditure. Non-plan revenue expenditure is accounted for by interest payments, subsidies (mainly on food and fertilisers), wage and salary payments to government employees, grants to States and Union Territories governments, pensions, police, economic services in various sectors, other general services such as tax collection, social services, and grants to foreign governments.
Differences Between Receipts And Payments Account And Income And Expenditure AccountThe following are the main differences between receipts and payments account and income and expenditure account: 1. NatureReceipts and payments account is a summary of cash transactions for a period and it is a real account. Income and expenditure account is a summary of expenditure and income like trading and profit and loss account and it is a nominal account.2. ObjectiveReceipts and payments account is prepared to show cash and bank receipts and payments during the period to derive closing balance of cash and bank. Income and expenditure account is prepared to show the net result of the operation during the period to derive surplus or deficit.3. RecordingAll cash and cheque receipts are recorded on debit side of receipts and payments account where as all cash and bank payments are recorded on credit side. In income and expenditure account all expenditure of revenue nature are recorded on debit side and all incomes of revenue nature are recorded on credit side.4. Capital And Revenue ItemsThere is no distinction between capital and revenue receipts and payments in receipts and payments account. All expenses and incomes of revenue nature are recorded on accrual basis in income and expenditure account.5. ContentsReceipts and payments account contains only cash and bank transactions. Income and expenditure account contains both cash and non-cash expenses and incomes of revenue nature.6. Balance Sheet RequirementReceipts and payments account is not required to prepare balance sheet. Income and expenditure account is required to prepare balance sheet.7. AdjustmentsNo adjustments are required in receipts and payments account. In income and expenditure account adjustments are made because it is prepared on accrual basis.
disequlibrium in the balance of payments can be corrected,through 2 major policies;the expenditure dampening an expenditure switching policies
No. Under the "General Welfare Doctrine", any government welfare payments are not included in taxable income.
deffered revenue expenditure
accured expenditure unpaid (AEU)
foreign inflation rates