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Question
Giving reason, state whether the following is a revenue expenditure or a capital expenditure in a government budget:
Expenditure of building a bridge.
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Solution
Expenditure incurred on building a bridge is considered a capital expenditure because this expenditure creates an asset and reduces the liabilities of the government.
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| S. No. | Content | Rs (in crores) |
| 1. | Revenue Expenditure | 100 |
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| 3. | Net Borrowings | 38 |
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| 6. | Non-tax Revenue | 15 |
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