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Giving Reason, State Whether the Following is a Revenue Expenditure Or a Capital Expenditure in a Government Budget: Expenditure of Building a Bridge.

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प्रश्न

Giving reason, state whether the following is a revenue expenditure or a capital expenditure in a government budget:

Expenditure of building a bridge.

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उत्तर

Expenditure incurred on building a bridge is considered a capital expenditure because this expenditure creates an asset and reduces the liabilities of the government.

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2013-2014 (March) Foreign Set 2

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1. Revenue Expenditure 100
2. Capital Receipts 40
3. Net Borrowings 38
4. Net Interest Payments 27
5. Tax Revenue 50
6. Non-tax Revenue 15

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2. Capital Receipts 40
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4. Net Interest Payments 27
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1. Revenue Expenditure 100
2. Capital Receipts 40
3. Net Borrowings 38
4. Net Interest Payments 27
5. Tax Revenue 50
6. Non-tax Revenue 15

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