Main menu

Pages

Difference between financial return and economic return

Economic Return VS Financial Return
Economic Return VS Financial Return
In the science of "economic planning", we find that there is a big difference between the financial return of the project, which is called the Financial Return, and the economic return to it, which is called the Economic Return.
The difference between the returnees is also very huge. When the state, for example, builds a new road, it:
  1. Its financial return is the sum of money collected by traffic gates as a result of walking on this road.
  2. The economic return of the road is, in addition to the traffic ticket, a "material value" is added, and it can be mentioned in the following points:
- Calculating the savings in the users' time for the road.
- Returning to the state from developing both sides of the road and establishing new urban and industrial communities.
- Savings in the cost of using fuel.
- The establishment of new factories and the consequent increase in employment, the absorption of unemployment, and the possibility of exporting.
-In addition to the many economic benefits for the state.
In the end, we make it clear that it is time to start the economic development of the recently established traffic hubs and highways, and to overcome all the difficulties facing investors in the industry from exaggerating the prices of industrial lands, the high price of energy, and other investment obstacles, so that we can transfer the low financial returns for The investment cost of establishing this widespread infrastructure leads to huge economic returns for the state.
reactions
author-img
باحث اقتصادي هدفي إنشاء موسوعة عن الدول العربية توضح جوانب القوة في كل دولة، واتمني أن يأتي اليوم الذي يتحد فيه العرب لتعم الفائدة علي كل الشعوب.

Comments

Content Article