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प्रश्न
Answer the following question.
How are capital expenditure different from Revenue expenditure? Discuss briefly.
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उत्तर
The Revenue Expenditure 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.
On the other hand, Capital Expenditure refers to that government expenditure, which causes a reduction in government liabilities as well as creates assets for the government. For example- expenditure on purchasing shares, bonds, etc.
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संबंधित प्रश्न
Distinguish between revenue expenditure and capital expenditure in Government budget. Give an example of each.
Explain how taxes and government expenditure can be used to influence revenue expenditure and capital expenditure?
What is capital expenditure?
Calculate investment expenditure from the following date about an economy which is in equilibrium :
National Income = 1000
Marginal propensity to save = 0.20
Autonomous consumption expenditure = 100
Calculate Autonomous Consumption Expenditure from the following data about an economy which is in equilibrium:
National income = 500
Marginal propensity to save = 0.30
Investment expenditure = 100
The government has started spending more on providing free services like education and health to the poor. Explain the economic value it reflects.
Distinguish between capital expenditure and revenue expenditure.
The expenditure multiplier is the ratio of ______.
| 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 |
Which of the following shows fiscal 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?
Level of planned output coincides with planned expenditure when ______
Purchase of shares is related to ______
The government uses ______ as proxy for income of households to identify the poor.
Read the following statements carefully and choose the correct alternatives given below:
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.
Which one of the following is not a capital expenditure?
