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Is the Following Revenue Expenditure Or Capital Expenditure in the Context of Government Budget? Give Reason. Expenditure on Purchasing Computers - Economics

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प्रश्न

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

Expenditure on purchasing computers

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उत्तर

Expenditure on purchasing computers is capital expenditure. This expenditure has a decline in government liabilities and creates assets for the government. For example, purchase of shares and bonds.

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2013-2014 (March) Delhi Set 1

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

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National Income = Rs 1,000

Marginal Propensity to Save = 0.20

Autonomous consumption expenditure = Rs 100


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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.


Construction of railway line is a type of ______ expenditure.


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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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