Question

Distinguish between revenue expenditure and capital expenditure. 

Distinguish between revenue expenditure and capital expenditure. Give two examples of each.

Give two differences between revenue expenditure and capital expenditure.

Distinguish between revenue expenditures and capital expenditures in a government budget.

Answer 1

Sr. No.	Revenue Expenditure	Capital Expenditure
1.	The expenditure incurred for carrying out day-to-day functions of the government departments and various services is called revenue expenditure.	The expenditure incurred for the progress and development of the country is called capital expenditure.
2.	It is recurring in nature.	It is non-recurring in nature.
3.	It can be developmental as well as non-developmental.	It is generally developmental or productive in nature and helps to increase the productive capacity of the nation.
4.	For example, expenditure on defence, judiciary, health, education, interest payments, etc.	For example, expenditure on land and buildings, machinery, loans to state governments, investment in shares, etc.