हिंदी

Is the Following Revenue Expenditure Or Capital Expenditure in the Context of Government Budget? Give Reason. Expenditure on a Collection of Taxes. - Economics

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प्रश्न

Is the following revenue expenditure or capital expenditure in the context of government budget? Give reason.

Expenditure on a collection of taxes.

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उत्तर

Expenditure on the collection of taxes is revenue expenditure. This expenditure has no decline in government liabilities and does not create assets for the government. For example, salaries, pensions and interest payments.

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2013-2014 (March) Delhi Set 1

संबंधित प्रश्न

What is revenue expenditure?


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Marginal propensity to save = 0.30
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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

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


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