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Market Distortions

Why are subsi...

Question

Why are subsidies considered to be revenue expenditures?

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Solution

Subsidies are revenue expenditures because they neither create assets nor reduces liabilities of the government.

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Similar questions

Why are subsidies treated as revenue expenditure?

Why are "Subsidies given to the State Government" revenue expenditures?

Q. Very short answer type question:
Why are subsidies treated as revenue expenditure?

Q. Consider the following expenditures:
1. Interest payments
2. Subsidies
3. Defence expenditure
Which of the expenditures given above is/are Non-Plan Revenue Expenditure?

Q. Q. Consider the following statements with reference to subsidies:Which of the above given statements is/are correct?

2 only
1 only
Both 1 and 2
Neither 1 nor 2

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