ATAR Notes: Forum

HSC Stuff => HSC Humanities Stuff => HSC Subjects + Help => HSC Economics => Topic started by: jeffsui on August 14, 2019, 08:40:14 pm

Title: Unconditional aid and BOP
Post by: jeffsui on August 14, 2019, 08:40:14 pm

If unconditional aid is recorded in the Net secondary income,  then why is foreign aid to build schools recorded in the capital account

Title: Re: Unconditional aid and BOP
Post by: Orejano on August 20, 2019, 05:00:51 pm

From RBA website: "capital transfers include conditional grants for specific capital projects (e.g. a foreign aid project to build roads) and forgiveness of debt"

"Current transfers: transactions between Australian residents and the rest of the world where one party provides something to be consumed by another party without receiving anything in return (e.g. emergency food aid)."

I think that is correct.

Conditional aid is in the capital acct