Question

_______________ expenditure is the expenditure which does not create any physical or financial assets or do not reduce any liability.

• A. Plan
• B. Revenue
• C. Non-plan
• D. None of the above

Answer 1

Answer: (B)

Revenue

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. For examples - Interest payment, defence purchases etc.