Question

Expenditure on government administration falls under revenue expenditure.

• A. True
• B. False

Answer 1

The correct option is A True

Revenue Expenditure are expenditute which neither creates an asset nor causes reduction in any government liability. It is recurring in nature and is incurred on nornam functioning of government and the provisions for various services.

Eg - Payment of salaries, pension, interest, administrative cost, defence, health services, grants to state etc.