Question

Distinguish Between

Revenue expenditure and Capital expenditure

Answer 1

Sr. No.	Revenue Expenditure	Capital Expenditure
1.	The expenditure incurred for carrying out day-to-day functions of the government departments and various services is called revenue expenditure.	The expenditure incurred for progress and development of the country is called capital expenditure.
2.	It is recurring in nature.	It is non-recurring in nature.
3.	It can be developmental as well as non-developmental.	It is generally developmental or productive in nature & helps to increase productive capacity of the nation.
4.	E.g.: expenditure on defence, judiciary, health, education, interest payments etc.	E.g.: expenditure on land and building, machinery, loan to state governments, investment in shares etc.