Why sale of goods and services by general government is deducted while calculating government final consumption expenditure?
Dear Student,
Sale of goods and services by general government produces revenue for the government and is the income of the government by sale of goods and services.
Government final consumption expenditure is net difference between government income and government receipts .Receipts are deducted while calculating expenditure.
Therefore, sale of goods and services by general government is deducted while calculating government final consumption expenditure .
Hope this information will clear your doubts on this topic.
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards
Sale of goods and services by general government produces revenue for the government and is the income of the government by sale of goods and services.
Government final consumption expenditure is net difference between government income and government receipts .Receipts are deducted while calculating expenditure.
Therefore, sale of goods and services by general government is deducted while calculating government final consumption expenditure .
Hope this information will clear your doubts on this topic.
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards