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Question

Which of the following is (are) revenue expenditure (s) for the government?


A

Pensions

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B

Education and health services

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C

Salaries of government employees

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D

Borrowing loans

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Solution

The correct options are
A

Pensions


B

Education and health services


C

Salaries of government employees


Out of the given options, pensions, education/health spending and salaries are revenue expenditures for the government. This is because they involve cash outflow and do not impact the assets and liabilities of the government.


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