Question

______ neither creates assets nor reduces government liabilities.

Options

• Capital expenditure

• Revenue expenditure

• Both Capital expenditure and Revenue expenditure

• None of these

Answer 1

Revenue expenditure neither creates assets nor reduces government liabilities.

Explanation:

Revenue expenditure refers to the government's spending on day-to-day operations and maintenance that neither creates assets nor reduces liabilities. It includes spending on salaries, subsidies, and interest payments and is used for immediate needs rather than long-term investments.