Question

Match the following

A.	It does not create assets for the government	a.	fiscal deficit
B.	It results in the creation of assets.	b.	Revenue expenditure
C.	It is the excess of total expenditure over total receipts.	c.	Capital expenditure

Options

• A. b, B. c, C. a

• A. c, B. a, C. b

• A. c, B. b, C. a

• A. a, B. c, C. b

Answer 1

A. b, B. c, C. a

Explanation:

Revenue expenditure:
It does not result in the government accumulating assets.

Capital expenditure:
As a result, assets are created. The fiscal deficit is the difference between total expenditure and total revenue. In other words, a fiscal deficit occurs when total government expenditure exceeds total government receipts.