Distinguish between revenue expenditure and capital expenditure.
Basis | Revenue expenditure | Capital Expenditure |
---|---|---|
Creation of Assets |
It does not create assets for the government. |
It results in the creation of assets. |
Reduction of liability |
These expenditures do not result in the reduction of Liability. |
These expenditures cause a reduction of the liability of the government. |
Items |
(a) Aids given to states and others |
(a) Purchase of shares |
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Welcome to the NCERT Solutions for Class 12 Macro Economics - Chapter . This page offers a step-by-step solution to the specific question from Excercise 1 , Question 2: Distinguish between revenue expenditure and capital expenditure.....
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