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​Which of the following is an example of revenue expenditure?​
Question

​Which of the following is an example of revenue expenditure?​

A.

​Repayment of loans by the government​

B.

​Construction of hospitals and school buildings​

C.

​Financial help given to other country as loan​

D.

​Salaries of government employees​

Correct option is D

The correct answer is (D) "Salaries of government employees".

  • Revenue expenditures include things like employee salaries, interest payments on debt from the past, subsidies, pensions, etc. that neither increase assets nor decrease liabilities.
  • Profits from sales are used to pay for them.
  • According to a general definition, a revenue expenditure is any outlay that has no net impact on liabilities or assets.
  • Every year, the Indian government releases a budget that includes both a revenue budget and a capital budget, as well as the total number of revenue expenditures.

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