Distinguish between revenue expenditure and capital expenditure in Government budget. Give an example of each.
What is the difference between revenue expenditure and capital expenditure?
|Basis of Difference||Capital Expenditure||Revenue Expenditure|
|1. Meaning||A decline in the government liabilities and creates assets for the government.||No decline in government liabilities and does not create assets for the government.|
|2. Examples||Purchase of shares and bonds||Salaries, pensions and interest payments|
Concept: Classification of Expenditure
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