Question

Revenue expenditure:

Options

• Does not create any asset for the government

• Reduces liability of the government

• Is non-recurring expenditure

• Increases productive capacity of the economy

Answer 1

Does not create any asset for the government

Explanation:

Revenue expenditure refers to the government's day-to-day operational expenses, such as salaries, subsidies, and interest payments. It does not create any assets for the government and is used for running services and covering regular expenses rather than for investment or asset creation.