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What is Revenue Expenditure? - Economics

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प्रश्न

What is revenue expenditure?

टिप्पणी लिखिए

उत्तर १

Expenditure by the government which does not create any assets for the government and does not reduce the liability of the government is called revenue expenditure. Hence, subsidies are treated as revenue expenditure as they do not reduce the liability of the government and do not add to the assets of the government.

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उत्तर २

  1. The expenditure incurred for day to day running of the business or for maintaining the earning capacity of the business is known as revenue expenditure.
  2. It is recurring in nature. It is incurred to generate revenue for a particular accounting period. The revenue expenditure may be incurred in relation to revenue or in relation to a particular accounting period.
  3. For example, the cost of purchases is a revenue expenditure related to sales revenue. Rent and salaries are related to a particular accounting period.
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Classification of Expenditure
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 11: Capital and Revenue Transactions - Very short answer questions [पृष्ठ २३६]

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सामाचीर कलवी Accountancy [English] Class 11 TN Board
अध्याय 11 Capital and Revenue Transactions
Very short answer questions | Q II 1. | पृष्ठ २३६
गोयल ब्रदर्स प्रकाशन Economics [English] Class 10 ICSE
अध्याय 11 Public Expenditure
QUESTION BANK | Q 3. (i) | पृष्ठ १८५

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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

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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

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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.


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