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How Are Capital Expenditure Different from Revenue Expenditure? Discuss Briefly. - Economics

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प्रश्न

Answer the following question.
How are capital expenditure different from Revenue expenditure?  Discuss briefly.

टीपा लिहा

उत्तर

The 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. For example- expenditure on salaries, pensions, subsidies, interest payments, etc.
On the other hand, Capital Expenditure refers to that government expenditure, which causes a reduction in government liabilities as well as creates assets for the government. For example- expenditure on purchasing shares, bonds, etc.

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Classification of Expenditure
  या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
2018-2019 (March) Delhi Set 2

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?


Calculate investment expenditure from the following date about an economy which is in equilibrium :
National Income = 1000
Marginal propensity to save = 0.20
Autonomous consumption expenditure = 100


Calculate Autonomous Consumption Expenditure from the following data about an economy which is in equilibrium: 
National income = 500
Marginal propensity to save = 0.30
Investment expenditure = 100


Distinguish between revenue expenditure and capital expenditure.


Distinguish between capital expenditure and revenue expenditure.


The Government of India has decided to vaccinate the adult population of India (with Covaxin/Covishield), without any charge. This would be categorized as ____________.


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 will be the primary deficit?


Level of planned output coincides with planned expenditure when ______


Purchase of shares is related to ______


Subsidies and expenditure on scholarships are examples of ______


Which one of the following is not a capital expenditure?


‘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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