Question

Subsidies and expenditure on scholarships are examples of ______.

Options

• revenue expenditure

• capital expenditure

• both revenue expenditure and capital expenditure

• neither revenue expenditure nor capital expenditure

Answer 1

Subsidies and expenditure on scholarships are examples of revenue expenditure.

Explanation:

Revenue expenditure refers to routine financial outlays that neither create assets nor reduce the liabilities of the government. Both subsidies and scholarship payments are recurring operational expenses meant for immediate social welfare, meaning they do not yield long-term physical infrastructure or clear public debt.