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March 28, 2024, 07:42:42 pm

Author Topic: Unconditional aid and BOP  (Read 881 times)  Share 

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jeffsui

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Unconditional aid and BOP
« on: August 14, 2019, 08:40:14 pm »
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If unconditional aid is recorded in the Net secondary income,  then why is foreign aid to build schools recorded in the capital account

Orejano

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Re: Unconditional aid and BOP
« Reply #1 on: August 20, 2019, 05:00:51 pm »
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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