Distinguish between Revenue Expenditure and Capital Expenditure in Government budget. Give an example of each.
Distinguish between Revenue Expenditure and Capital Expenditure in Government budget. Give an example of each.
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Revenue Expenditure-Expenditure that neither creates an assets nor reduces a liability is called Revenue Expenditure.
Capital Expenditure-Expenditure that either creates an asset or reduces a liability is called Capital Expenditure.
Example of Revenue Expenditure-Payment of salaries to its employees, etc.
Example of Capital Expenditure-Construction of roads, etc.
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