Read the following about the Revenue expenditure.
A. Revenue Expenditure is expenditure incurred for purposes other than the creation of physical or financial assets of the central government.
B. It relates to those expenses incurred for the normal functioning of the government departments and various services, interest payments on debt incurred by the government, and grants given to state governments and other parties (even though some of the grants may be meant for creation of assets) .
Identify the INCORRECT statement/statements.

Correct option is B

The correct answer is (b) Neither A nor B
Both statements A and B regarding Revenue Expenditure are correct:
· Statement A: Revenue Expenditure is indeed expenditure that is incurred for purposes other than the creation of physical or financial assets. It mainly involves the operational expenses of the government.
· Statement B: This statement accurately describes that Revenue Expenditure covers expenses for the normal functioning of government departments, interest payments on government debt, and grants given to state governments or other entities, even if some of those grants are used for asset creation. These are recurrent expenditures meant to maintain the existing infrastructure and services.
Information Booster:
· Revenue Expenditure is classified in the Union Budget as non-capital expenditure. It includes daily expenses that are necessary for running the government and its operations.
· This expenditure does not result in the creation of assets but is essential for maintaining existing services, welfare schemes, and administrative operations.