Question : Assertion (A): Highway and road work announced in Kerala, Tamil Ndu, West Bengal, and Assam in budget 2021.
Reason (R): Such announcements will increase the revenue expenditure of the government.
Option 1: Both A and R are true and R is the correct explanation of A
Option 2: Both A and R are true but R is not a correct explanation of A
Option 3: A is true but R is false
Option 4: A is false but R is true
Correct Answer: A is true but R is false
Solution : The correct answer is (c) A is true but R is false.
If highway and road work were announced in Kerala, Tamil Nadu, West Bengal, and Assam in the budget of 2021, it means that the government has allocated funds for infrastructure development in these states.
The announcement of highway and road work in specific states may not necessarily increase the revenue expenditure of the government. Revenue expenditure typically includes day-to-day operational expenses, salaries, maintenance costs, and other recurring expenditures. On the other hand, funds allocated for infrastructure development, such as highway and road work, usually fall under the capital expenditure category, which is separate from revenue expenditure.
While infrastructure development projects can require government spending, the allocation of funds for such projects is usually classified as capital expenditure because it involves long-term investments in assets or infrastructure. These investments aim to enhance economic development, connectivity, and transportation networks. Revenue expenditure, on the other hand, pertains to regular ongoing expenses of the government.
