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Above-the-Line 3

Definition

Denoting transactions concerned with revenue, as opposed to capital, in national accounts.

Example

Example 1: In Nigeria’s national accounts, revenue from oil exports and taxation are recorded above-the-line as they represent the government’s regular income not one-off capital transactions. Example 2: In Canada’s national accounts, tax revenues and government spending on public services are recorded above-the-line, separating everyday revenue transactions from capital investments like infrastructure projects.

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