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Government Budget and Economy — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsGovernment Budget and Economy1 Mark
Question
Why are subsidies treated as revenue expenditure?
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Answer

Subsidies are treated as revenue expenditure, because they do not result in creation of assets nor reduction in liability, but are given to facilitate the normal functioning of the government.

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