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Distinguish Between Revenue Expenditure and Capital Expenditure. - Economics

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प्रश्न

Distinguish between revenue expenditure and capital expenditure.

अंतर स्पष्ट करें

उत्तर

Basis

Revenue expenditure

Capital expenditure

Creation of Assets

It does not create assets for the government.

It results in the creation of assets.

Reduction of Liability

These expenditures do not result in the reduction of liability.

These expenditures cause a reduction of the liability of the government.

Items

(a) Aids given to states and others

(b) Interest payments

(c) Expenditure on defence

(a) Purchase of shares

(b) Expenditure on land, building, etc.

(c) Grants by the central government to the state government

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Classification of Expenditure
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 5: Government Budget And The Economy - Exercises [पृष्ठ ८३]

APPEARS IN

एनसीईआरटी Economics - Introductory Macroeconomics [English] Class 12
अध्याय 5 Government Budget And The Economy
Exercises | Q 2 | पृष्ठ ८३

संबंधित प्रश्न

What is revenue expenditure?


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

Expenditure on a collection of taxes.


Explain how taxes and government expenditure can be used to influence revenue expenditure and capital expenditure?


Giving reason, state whether the following is a revenue expenditure or a capital expenditure in a government budget:

Expenditure on scholarships


Giving reason, state whether the following is a revenue expenditure or a capital expenditure in a government budget:

Expenditure of building a bridge.


The government has started spending more on providing free services like education and health to the poor. Explain the economic value it reflects.


What is the difference between revenue expenditure and capital expenditure? Explain how taxes and government expenditure can be used to influence.


Distinguish between capital expenditure and revenue expenditure.


The expenditure multiplier is the ratio of ______.


S. No. Content Rs (in crores)
1. Revenue Expenditure 100
2. Capital Receipts 40
3. Net Borrowings 38
4. Net Interest Payments 27
5. Tax Revenue 50
6. Non-tax Revenue 15

What is the revenue deficit?


S. No. Content Rs (in crores)
1. Revenue Expenditure 100
2. Capital Receipts 40
3. Net Borrowings 38
4. Net Interest Payments 27
5. Tax Revenue 50
6. Non-tax Revenue 15

Which of the following shows fiscal deficit?


Purchase of shares is related to ______


Calculate Investment expenditure from the following data about an economy that is in equilibrium.

National Income = Rs 1,000

Marginal Propensity to Save = 0.20

Autonomous consumption expenditure = Rs 100


Measure the level of ex-ante aggregate demand when autonomous investment and consumption expenditure (1) is Rs 50 crores, MPS is 0.2 and the level of income (Y) is Rs 4000 crores.


Read the following statements carefully and choose the correct alternatives given below:

Statement 1: Revenue Expenditure is expenditure incurred for purposes other than the creation of physical or financial assets of the central government.

Statement 2: Revenue Expenditure relates to those expenses incurred for the normal functioning of the government departments.


Subsidies and expenditure on scholarships are examples of ______


‘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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