Explain the budget expenditure of the government.
Budget expenditure refers to the estimated money expenditure by the government on various social, economic and political activities in the country during a particular financial year. The budget expenditure can also be classified on three bases:
- On the basis of the creation of assets and liabilities- On this basis, the budget expenditure is divided into two, revenue expenditure and capital expenditure.
- On the basis of planned and non-planned activities- On this basis, the budget expenditure is divided in two, plan expenditure and non-plan expenditure.
- On the basis of development and non-developmental activities- On this basis, the budget expenditure is divided in two, development expenditure and non-development expenditure.