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Questions
Explain the term revenue expenditure of the government.
Explain the term revenue expenditure.
Explain
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Solution
Revenue expenditure refers to the regular, recurring expenses of the government that do not create any asset or reduce any liability. These expenditures are mainly used for the day-to-day functioning of the government and the provision of services.
Examples include:
- Salaries of government employees
- Pensions
- Interest payments on loans
- Expenditure on subsidies and welfare schemes
Revenue expenditure is non-asset-creating and is generally consumed within the same financial year.
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Notes
Students should refer to the answer according to their question and preferred marks.
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