PathSet Publications
BUDGET EXPENDITURE
Revenue Expenditure:
- An expenditure that (a) Neither creates any assets (b) nor causes any reduction of liability.
- Examples of revenue expenditure are salaries of government employees, interest, payment on loans taken by the government, pensions etc.
Capital Expenditure:
- An expenditure that either create assets for the government [equity or shares) of the domestic, or cause reduction in liabilities of the government.
- Examples include Loan to state and union territories, expenditure on building flyovers, road etc.
Difference between capital expenditure and revenue expenditure.
