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Government Funds

Why are "Subs...

Question

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

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Solution

Subsidies given to the State Government are revenue expenditures because they neither increase assets nor decrease liability.

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Similar questions

Why are subsidies considered to be revenue expenditures?

Why are subsidies treated as revenue expenditure?

Q. Short answer type questions:
Giving reasons, categorise the following into revenue expenditure and capital expenditure: (i) Subsidies; (ii) Grants given to State Governments; (iii) Repayment of loans; (iv) Construction of school buildings.

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?

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