Expenditure Method
3.10 The income available to the individuals in the form of labour income or
capital income or the income retained by the productive units is then spent.
This utilisation of the income can take various forms viz. (a) household
consumption expenditure, (b) government consumption expenditure, (c) fixed
capital formation, (d) stock accumulation and (e) net exports. Thus the third
alternative of measurement of income or value added is obtained through the
items of expenditure enumerated above. This method is known as
Expenditure Method.[Reproduced from CSO Publication]
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