Government borrowings are not directly included in the GDP calculation. GDP measures the total market value of all goods and services produced within a country during a specific period. It includes components like:
Consumption (C): Spending by households on goods and services.
Investment (I): Spending on business capital, residential construction, and inventory.
Government Spending (G): Expenditure on goods and services by the government (excluding transfer payments like pensions or subsidies).
Kerala has done well on social services, but has failed in job creation. Most people from that state find jobs in other places in India and overseas.
Government borrowings are not directly included in the GDP calculation. GDP measures the total market value of all goods and services produced within a country during a specific period. It includes components like:
Consumption (C): Spending by households on goods and services.
Investment (I): Spending on business capital, residential construction, and inventory.
Government Spending (G): Expenditure on goods and services by the government (excluding transfer payments like pensions or subsidies).
Net Exports (X - M): Exports minus imports.
When freebies are given, it is government expenditure. But it becomes consumption in the hands of the beneficiary. GDP goes up in that case.
I understand Kerala’s communist government has made a huge difference, why don’t the rest of India learn from Kerala?
It's all about will to develop. If one has will he can do it anyhow.