Government As Producer

Definition

Government As Producer. As part of the 2003 comprehensive NIPA revision, the treatment of government was changed to recognize government as a producer. General government is now treated as an intermediate industry and recognized as producing services (valued as the expense of providing those services). Services that are directly purchased (for example, college tuition) are now treated as secondary products of the government industry, and the remaining services are treated as consumption expenditures in government final uses.