Question : Which of the following is a revenue expenditure?
Option 1: Loans given to union territories
Option 2: Expenditure on construction of metros
Option 3: 10% shares purchase by the government in a private company
Option 4: Salary paid Army officers.
Correct Answer: Salary paid Army officers.
Solution : Salary paid to army officer is a revenue expenditure as it neither create any assets nor reduces any liability. Rest of the three are part of capital expenditure . Hence Option D is correct.
Question : Which of the following is a capital expenditure?
Question : From the following data calculate Revenue deficit- Tax revenue- 1050 Revenue expenditure- 2000 Non-tax revenue- 200 Recovery of loans- 120 Capital expenditure- 500 Disinvestment- 50 Interest payments- 20
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