Are unilateral transfers included in National Income or not?. If no then why?
Answers
done or made by one person who is involved in something without the agreement of the other person or people
Unilateral transfers are not included in National Income calculation.
Explanation:
Unilateral transfer basically means transfer payments from any foreign country as is part of the transfer income or transfer payment.Unilateral transfers can be exemplified as gifts to the government of any country from any other country,philanthropic or foreign NGO granted aids,foreign aid during any emergency conditions such as flood,drought,earthquakes or other natural calamities and so forth.The recipient country is not liable to pay back anything in exchange of any kind of unilateral transfer which is why,it is also termed as one way transfer.Therefore,unilateral transfers are part of transfer payments and any kind of transfer payments are customarily excluded from the computation of national income of any country.