SELECT * FROM question_mgmt as q WHERE id=5428 AND status=1 SELECT id,question_no,question,chapter FROM question_mgmt as q WHERE courseId=3 AND subId=59 AND chapterId=606 and ex_no='1' AND status=1 ORDER BY CAST(question_no AS UNSIGNED) CBSE Free NCERT Solution of 12th macro-economics Government Budget and Economy distinguish between revenue expenditure and capita

Question:

Distinguish between revenue expenditure and capital expenditure.

Answer:

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
(b) Interest payments
(c) Expenditure on defence

(a) Purchase of shares
(b) Expenditure on land, building, etc.
(c) Grants by the central government to the state Government.


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