Distinguish between revenue expenditure and capital expenditure.
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| Basis | Revenue Expenditure | Capital Expenditure |
| Meaning | An expenditure that: Neither creates any assets, nor causes any reduction of liability. | Capital expenditure that: Either creates assets for the government or causes reduction in liabilities of the government. |
| Nature | It is recurring type. It is incurred regularly. | It is a non recurring type of expenditure. |
| Example | Expenditure incurred on civil administration, defence forces, public health and education. | Expenditure incurred on construction of building, dams, steel plants etc. |
| Category | This is generally categorised as non-development expenditure. | This is generally categorised as development expenditure. |
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