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Is the Following Revenue Expenditure Or Capital Expenditure in the Context of Government Budget? Give Reason. Expenditure on Purchasing Computers - Economics

Is the following revenue expenditure or capital expenditure in the context of government budget? Give reason.

Expenditure on purchasing computers

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Solution

Expenditure on purchasing computers is capital expenditure. This expenditure has a decline in government liabilities and creates assets for the government. For example, purchase of shares and bonds.

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