What is expenditure budget?

0 votes
169 views
Saddiya  Anwar asked 19-Feb-2020 in Indian economy by Saddiya Anwar

What is expenditure budget?

1 Answer

0 votes
Saddiya  Anwar answered 19-Feb-2020 by Saddiya Anwar

What is expenditure budget?

The Expenditure Budget presents information on how much the government intends to spend and on what. There are two categories of expenditure namely revenue expenditure and capital expenditure. Revenue expenditure denotes to all charges for the maintenance of assets created (under capital expenditure) and working expenses, such as operational expenses of a school or a health centre. Revenue expenditure is recurring in nature as the government incurs such expenditure annually. The assets created during the past years need periodic maintenance.

Capital expenditure deals with acquisition of assets like land, buildings, machinery, equipment, investments in shares, etc, and loans and advances granted by Central government to State ans Union Territory governments, government companies, corporations ans other parties.


Read More at : answers.mindstick.com