Give meaning of capital expenditure and revenue expenditure in a government budget and an example of each.
CBSE OUTSIDE DELHI - SET 1 2008
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Capital expenditure is the expenditure by government that either creates an asset or reduces a liability.Example: Construction, repayment of loan, etc.
Revenue expenditure is the expenditure by government that neither creates an asset nor reduces a liability.
Example: Interest payment, subsidy, etc.
Revenue expenditure is the expenditure by government that neither creates an asset nor reduces a liability.
Example: Interest payment, subsidy, etc.
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