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


Team Careers360 9th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

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.

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