Definition |
Expenditure incurred by central government on consumption goods and services. This expenditure is recorded as total costs of production, i.e. intermediate consumption (goods and services that central government disposes for its production purpose), compensation of employees (use of own labour force), consumption of fixed capital (use of own production assets), any other taxes on production, net, while deducting receipts from sales. In addition, expenditures on consumption goods and services purchased from market producers and supplied directly to households, e.g. refunds related to purchases of pharmaceuticals, fees to physicians etc. Central government final consumption expenditure consists of two main parts, i.e. collective (actual) final consumption of central government, and individual consumption expenditure of central government, which is also part of actual final consumption of households. |