मराठी

Distinguish Between Revenue Expenditure and Capital Expenditure. - Economics

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प्रश्न

Distinguish between revenue expenditure and capital expenditure.

फरक स्पष्ट करा

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
  या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
पाठ 5: Government Budget And The Economy - Exercises [पृष्ठ ८३]

APPEARS IN

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

संबंधित प्रश्‍न

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Which one of these is a revenue expenditure?


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Expenditure on purchasing computers


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National Income = 1000
Marginal propensity to save = 0.20
Autonomous consumption expenditure = 100


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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

What will be the primary 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 is a non-tax revenue for the government?


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.


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Identify the correctly matched pair of the items in Column A to those in Column B:

Column A Column B
1. Revenue Expenditure (a) Does not cause any reduction in government liability
2. Capital Expenditure (b) Which creates corresponding liability for the government
3. Revenue Receipts (c) Which causes a reduction in assets of the government
4. capital Receipts (d) Causes reduction in government liability.

‘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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