Which of the following is are part of the Government Final Consumption Expenditure GFCE expenditure ...........

Economic and Social Issues Budgeting and Fiscal policy

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Which of the following is/are part of the Government Final Consumption Expenditure (GFCE)?

expenditure on durable goods which are used in defence sector
compensation of employees
net purchase of goods and services by government

Select the correct code.

1&2 only

2&3 only

1&3 only

All of the above

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Explanation:

General government final consumption expenditure includes all government current expenditures for purchases of goods and services (including compensation of employees).

By convention, expenditure on durable goods, which are used for defence, are also treated as part of consumption expenditure of the Government.

Recently, The National Statistical Office has projected that GDP in the FY 2020-21 would total almost 134.4-lakh crore in constant prices, reflecting a 7.7% contraction from the preceding year’s figure.

Hence option 4th is correct.