Question

Total expenditure on national defence in India is categorised as ______.

Options

• revenue expenditure

• capital expenditure

• partly revenue expenditure and partly capital expenditure

• none of these

Answer 1

Total expenditure on national defence in India is categorised as partly revenue expenditure and partly capital expenditure.

Explanation:

• Revenue expenditure in defence includes salaries of armed forces, maintenance of defence equipment, and day-to-day operational costs.
• Capital expenditure in defense includes the purchase of tanks, aircraft, and warships, and the construction of defence infrastructure.
• Thus, national defence expenditure is partly revenue and partly capital expenditure - both kinds of spending happen.