Question

Budget expenditure refers to the estimated expenditure of the government during a given fiscal year.

• A. True
• B. False

Answer 1

The correct option is A True

Budget expenditure refers to the overall expenditure done by the government in the economy during a given period of financial year. It has two components

1. Revenue expenditure are all such types of government expenditure that does not create any assets for the government or does not cause any reduction in the liability of the government.

2. Capital expenditure - Capital expenditure are all those expenditure of the government that either creates an asset for the government or reduce the liability of the government. For example - Expenditure on land and building, purchase of shares etc.