Question

Write explanatory notes or answer the following.  

 Revenue expenditures.  

Answer 1

 ​Revenue expenditure refers to the government expenditure which does not cause any reduction in government liabilities and also does not create assets for the government. In other words, the expenditure for the normal running of government departments and day to day activities is known as revenue expenditure For example- expenditure on general services, social and community services, economics services and grants, etc. are all included in revenue expenditure. This kind of expenditure is met out with revenue receipts.