Question

_________ is an item of revenue expenditure of the government.

• A. External grants
• B. Subsidies
• C. Acquisition of building
• D. Small saving

Answer 1

The correct option is B Subsidies

Subsidy is a form of financial aid or support extended to an economic sector generally to promote social and economic policy. Revenue expenditure is an amount that is expensed in the accounting year in which it is made. Hence, subsidy is an item of revenue expenditure of the government as it is expensed in the year in which it is given.