Question

Under the Gruha Lakshmi Scheme in Karnataka, the state government provides ₹ 2000 monthly assistance to head female member in each family. Will this receipt be a part of National Income accounting? Explain.

Answer 1

No, the ₹ 2000 monthly assistance provided under the Gruha Lakshmi Scheme will not be included in National Income accounting.

Explanation: 

This payment is a transfer payment, as it is provided by the government without any productive activity in return. Transfer payments are not included in national income since they do not reflect the production of goods or services.