Question : Expenditure by government on maintenance of transportation services and warehousing facilities in the economy is an example of
Option 1: Revenue receipts
Option 2: Capital receipts
Option 3: Revenue expenditure
Option 4: Capital expenditure
Correct Answer: Revenue expenditure
Solution : The correct answer is (c) Revenue expenditure.
Revenue expenditure refers to the day-to-day operational expenses incurred by the government for the provision of public services and the maintenance of existing assets. This includes expenses for salaries, maintenance, repairs, and other routine costs.
In the case of maintenance of transportation services and warehousing facilities, the government's expenditure would be considered as revenue expenditure because it pertains to the ongoing operational costs rather than the creation or acquisition of new assets.
