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Giving Reason, State Whether the Following is a Revenue Expenditure Or a Capital Expenditure in a Government Budget: Expenditure on Scholarships - Economics

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प्रश्न

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

Expenditure on scholarships

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उत्तर

Expenditure incurred on scholarships is considered as revenue expenditure because this expenditure does not create any asset and does not reduce any liability of the government

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2013-2014 (March) Foreign Set 2

संबंधित प्रश्न

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S. No. Content Rs (in crores)
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

What is the revenue deficit?


S. No. Content Rs (in crores)
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

What will be the primary deficit?


S. No. Content Rs (in crores)
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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Statement 1: Revenue Expenditure is expenditure incurred for purposes other than the creation of physical or financial assets of the central government.

Statement 2: Revenue Expenditure relates to those expenses incurred for the normal functioning of the government departments.


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Column A Column B
1. Revenue Expenditure (a) Does not cause any reduction in government liability
2. Capital Expenditure (b) Which creates corresponding liability for the government
3. Revenue Receipts (c) Which causes a reduction in assets of the government
4. capital Receipts (d) Causes reduction in government liability.

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Identify and discuss the nature of the government expenditure indicated in the given statement.


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