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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
Is the following revenue expenditure or capital expenditure in the context of government budget? Give reason.
Expenditure on a collection of taxes.
Distinguish between revenue expenditure and capital expenditure in Government budget. Give an example of each.
Which one of these is a revenue 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
What is the difference between revenue expenditure and capital expenditure? Explain how taxes and government expenditure can be used to influence.
Capital expenditure is that estimated expenditure of the government which?
| 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?
| 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
Measure the level of ex-ante aggregate demand when autonomous investment and consumption expenditure (1) is Rs 50 crores, MPS is 0.2 and the level of income (Y) is Rs 4000 crores.
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.
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. |
