Question

Q. Which of the following is/are included in the revenue expenditure of the government?

Select the correct answer using the codes given below:

• A. 1 only
• B. 1 and 2 only
• C. 1, 2 and 3
• D. 1, 2 and 4

Answer 1

The correct option is D 1, 2 and 4

Explanation:

An expenditure that neither creates assets nor reduces liability is called Revenue Expenditure, e.g., salaries of employees, interest payment on past debt, subsidies, pension, etc. These are financed out of revenue receipts. Broadly, any expenditure which does not lead to any creation of assets or reduction in liability is treated as revenue expenditure.