Expenditure by Governemnt on Flood Victims is a transfer payment while Expenditure by Government on providing free medical services is a part of Government Final Consumption Expenditure
Whats the difference in these 2 cases????
In both cases the government is helping out the needy people
In neither case are the citizens performing any productive service for the government
and both these cases would be added in National income via Income Method as income of food supplier who supplies food to flood victims and income of doctor who provides free medical services
Expenditure on flood victims is a single sided payment and it will also not yield anything productive in return but Expenditure on medical services is a factor payment because govt is availing the services of doctors.