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Is the Following Revenue Expenditure Or Capital Expenditure in the Context of Government Budget? Give Reason. Expenditure on Purchasing Computers - Economics

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Question

Is the following revenue expenditure or capital expenditure in the context of government budget? Give reason.

Expenditure on purchasing computers

Solution

Expenditure on purchasing computers is capital expenditure. This expenditure has a decline in government liabilities and creates assets for the government. For example, purchase of shares and bonds.

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Classification of Expenditure
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2013-2014 (March) Delhi Set 1

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