The projected benefits revealed by an economic appraisal. Economic benefits are usually gains that can be expressed in financial terms as the result of an improvement in facilities provided by a government, local authority, etc. For example, the economic benefits arising from the construction of a new or improved road might include lower vehicle operating costs, time savings for the road users, and lower accident costs as a result of fewer accidents. In each case the savings would be in economic terms, that is, excluding the effect of taxes and subsidies within the economy. See economic costs.
Subjects: Financial Institutions and Services — Accounting.