Question

Grants, a part of the revenue expenditure of the government, refers to all the grants given by the state government to the central government.

• A. True
• B. False

Answer 1

The correct option is B False

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. Therefore, grants as a part of revenue expenditure is a unilateral payment or transfer payment from central government to the state government in case of uncertainties.