Question

Distinguish between revenue exp. and capital expenditure in a govt. budget. Give examples 

Answer 1

Revenue Expenditure	Capital expenditure
Revenue expenditures are that expenditure of the government which neither creates the assets nor reduce the liability of the government.	Capital expenditures are those expenditure of the government which either creates the assets or reduce the liability of the government.
Example: Payments of salary of employees, interest payment etc.	Example: Repayment of borrowing, construction of schools, hospitals etc.
It is recurring in nature.	It is non-recurring in nature.