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Identify the following as revenue expenditureand capital expenditure . Givereasons. (i) Salary paid to Army officers. (ii) Purchase of Metro coaches from Japan. (iii) Repaymentof loans. (iv) Grants given by central government to state Government . (v) Loan given to Union Territories. (vi) Interest paid on National Debt. (vii) Expenditure on construction of Metro. Pension paid to retired Government employees. (ix) 10 % shares purchased by the Government in a private company. (x) Subsidies . (xi) Expenditure on collection of taxes. (xii) Expenditure on building a bridge . |
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Answer» SOLUTION :(i) It is a REVENUE expenditure as it neither creates any asset nor reduces any liability of the government . (ii) It is a capital expenditure as it increases asset of the government . (iii)ITIS a capital expenditure as it reduces the liability of the government. (IV) It isa revenue expenditure as it neither creates any asset nor reducesany liabilityof the government . (v) It is a capital expenditure as it increases asset of the government . (vi) It is a revenue expenditure as it neither creates any asset nor reduces any liability of the government . (VII) It is a capital expenditure as it increases asset of the government. (viii) It is a revenue expenditure as it neither creates any asset norreduces any liability of the government . (ix) It is a capital expenditure as it increases asset of the government . (x)It is a revenue expenditureas it neither creates any asset nor reduces any liability of the government . (xi) It is a revenue expenditure as it neither creates any asset nor reduces any liability of the government (xii) It is a capital expenditure as it increases asset of the government . |
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