Question
Differentiate between Current transfers and Capital Transfers.
| S. no. | Basis |
Current Transfers
|
Capital Transfers
|
| 1. | Made out of |
Transfers made from the current income of the payer and added to the current income of the recipient the current income of the recipient expenditure are called current transfers.
|
Capital transfers are defined as transfers in cash and in kind for the purpose of investment wealth or saving of the donor.
|
| 2. | Concept |
Recurring or regular in nature.
|
Non-recurring or irregular in nature.
|
| 3. | Example |
Scholarships, gifts, old age pension, etc.
|
Investment grant, capital gains, tax, war damages, etc.
|
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| S.No. | (Rs. lakhs) | |
| 1 | Net value added at factor cost. | 100 |
| 2 | Intermediate consumption. | 75 |
| 3 | Excise duty. | 20 |
| 4 | Subsidy. | 5 |
| 5 | Depreciation. | 10 |