Is the following a Revenue Expenditure or Capital Expenditure in the context of government budget? Give reasons.
Is the following a Revenue Expenditure or Capital Expenditure in the context of government budget? Give reasons.
(i) Expenditure on collection of taxes.
(ii) Expenditure on purchasing computers
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(i) Expenditure on Collection of Taxes- It is a revenue expenditure because it neither creates any assets nor reduces any liability
(ii) Expenditure on Purchasing Computer- It is a capital expenditure because it creates assets.
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