Question

The revenue budget consists of revenue receipts and revenue expenditure.

• A. True
• B. False

Answer 1

The correct option is A True

True.

Revenue shows all types of current receipts of the government and related expenditures. Revenue budget includes 'revenue receipts' and 'revenue expenditure'.

Revenue receipts refers to all such types of money receipts that do not create any liability for the government or does not reduce any asset of the government.

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.