Advertisements
Advertisements
Question
Which one of these is a revenue expenditure?
Options
Purchase of shares
Loans advanced
Subsidies
Expenditure on acquisition of land
Solution
Subsidies
Explanation:-
Expenditure by the government which does not create any assets for the government and does not reduce the liability of the government is called revenue expenditure. Hence, subsidies are treated as revenue expenditure as they do not reduce the liability of the government and do not add to the assets of the government
APPEARS IN
RELATED QUESTIONS
What is revenue expenditure?
Explain how taxes and government expenditure can be used to influence revenue expenditure and capital expenditure?
Is the following revenue expenditure or capital expenditure in the context of government budget? Give reason.
Expenditure on purchasing computers
Calculate Autonomous Consumption Expenditure from the following data about an economy which is in equilibrium:
National income = 500
Marginal propensity to save = 0.30
Investment expenditure = 100
Giving reason, state whether the following is a revenue expenditure or a capital expenditure in a government budget:
Expenditure of building a bridge.
The government has started spending more on providing free services like education and health to the poor. Explain the economic value it reflects.
What is the difference between revenue expenditure and capital expenditure? Explain how taxes and government expenditure can be used to influence.
Distinguish between revenue expenditure and capital expenditure.
The Government of India has decided to vaccinate the adult population of India (with Covaxin/Covishield), without any charge. This would be categorized as ____________.
| S. No. | Content | Rs (in crores) |
| 1. | Revenue Expenditure | 100 |
| 2. | Capital Receipts | 40 |
| 3. | Net Borrowings | 38 |
| 4. | Net Interest Payments | 27 |
| 5. | Tax Revenue | 50 |
| 6. | Non-tax Revenue | 15 |
Which of the following shows fiscal deficit?
| S. No. | Content | Rs (in crores) |
| 1. | Revenue Expenditure | 100 |
| 2. | Capital Receipts | 40 |
| 3. | Net Borrowings | 38 |
| 4. | Net Interest Payments | 27 |
| 5. | Tax Revenue | 50 |
| 6. | Non-tax Revenue | 15 |
Which of the following is a non-tax revenue for the government?
Level of planned output coincides with planned expenditure when ______
Calculate Investment expenditure from the following data about an economy that is in equilibrium.
National Income = Rs 1,000
Marginal Propensity to Save = 0.20
Autonomous consumption expenditure = Rs 100
The government uses ______ as proxy for income of households to identify the poor.
Read the following statements carefully and choose the correct alternatives given below:
Statement 1: Revenue Expenditure is expenditure incurred for purposes other than the creation of physical or financial assets of the central government.
Statement 2: Revenue Expenditure relates to those expenses incurred for the normal functioning of the government departments.
Subsidies and expenditure on scholarships are examples of ______
Which one of the following is not a capital expenditure?
‘Under the Ayushmaan Bharat Scheme, the Government provides free medicines to the economically backward section of the society’.
Identify and discuss the nature of the government expenditure indicated in the given statement.
