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Question
‘Under the Ayushmaan Bharat Scheme, the Government provides free medicines to the economically backward section of the society’.
Identify and discuss the nature of the government expenditure indicated in the given statement.
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Solution
Expenditure incurred by the government under Ayushmaan Bharat Scheme for providing free medicines to the economically backward section does not lead to any creation of assets or reduction in liabilities. Hence, it can be classified as revenue expenditure.
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