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Which one of these is a revenue expenditure? - Economics

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प्रश्न

Which one of these is a revenue expenditure?

विकल्प

  • Purchase of shares

  • Loans advanced

  • Subsidies

  • Expenditure on acquisition of land

MCQ
रिक्त स्थान भरें
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उत्तर

Subsidies

Explanation:-

Expenditure by the government which does not create any assets for the government and does not reduce the liability of the government is called revenue expenditure. Hence, subsidies are treated as revenue expenditure as they do not reduce the liability of the government and do not add to the assets of the government

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संबंधित प्रश्न

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


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

Expenditure on scholarships


The government has started spending more on providing free services like education and health to the poor. Explain the economic value it reflects.


What is the difference between revenue expenditure and capital expenditure? Explain how taxes and government expenditure can be used to influence.


Answer the following question.
How are capital expenditure different from Revenue expenditure?  Discuss briefly.


Distinguish between capital expenditure and revenue expenditure.


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

Which of the following is a non-tax revenue for the government?


Level of planned output coincides with planned expenditure when ______


Purchase of shares is related to ______


Calculate Investment expenditure from the following data about an economy that is in equilibrium.

National Income = Rs 1,000

Marginal Propensity to Save = 0.20

Autonomous consumption expenditure = Rs 100


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.


Construction of railway line is a type of ______ expenditure.


Subsidies and expenditure on scholarships are examples of ______


Which one of the following is not a capital expenditure?


Identify the correctly matched pair of the items in Column A to those in Column B:

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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