The debit side:
The expenditures of the government are recorded on this side.
There are two accounts on the debit side. They are:
1. Current (Revenue) expenditures:
Current expenditures include expenditure made in the current year on salaries of government employees, interest payment on loan taken by the government, pension, subsidies, grants, current expenses on defence, etc.
2. Capital expenditures:
- These are expenditures on those transactions which have long term or continuous impact on government funds.
- This account includes loans given by the government to other governments, repayment of previously taken loans, capital expenses on social and economic services, as well as capital expenses on defence, etc.
