Give reason,state whether the following is a Revenue Expenditure or a Capital Expenditure in a government budget:
1) Expenditure on Scholarship
2) Expenditure on building a bridge

Dear Student,
1) Expenditure on Scholarship is a Revenue Expenditure because it neither increase an asset nor decrease the liability.
2) Expenditure on building a bridge is a Capital Expenditure because it will lead to increase an asset in the economy or country.
Regards

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