Give meaining of capital expenditure and revenu expenditure in government budget and an example of each

Revenue Expenditure- This refers to the government expenditure which does not cause any reduction in government liabilities and also does not create assets for the government. For example- expenditure on salaries, pensions, subsidies, interest payments, etc.

Capital Expenditure- This refers to that government expenditure, which causes reduction in the government liabilities as well as creates assets for the government. For example- expenditure on purchasing shares, bonds, etc.

  • 0
What are you looking for?