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Issue detail

19. Military expenditures
Issue description and recommendation

The 1993 SNA divides military acquisitions into offensive weapons and their means of delivery, and all other. The former are excluded from capital formation regardless of their life length. This treatment implies that "defense" is not a service provided by government using military hardware as associated assets. Further, weapons that have already been expensed can actually be taken out of stock for use or for exports and would have to be balanced by a negative component in government final consumption. Should the line between gross capital formation and intermediate consumption be drawn differently?

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Chapters affected by this issue, and their status (For more information click corresponding chapter from the list)
  No draft yet, AEG/world review draft, Final draft
6. The production account
10. The capital account
13. The balance sheet
22. The general government and public sectors

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