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Why is expenditure on subsidies termed as an important item of Revenue Expenditure ? |
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Answer» Expenditure on subsidies do not cause any reduction in liability of the government and also does not create any asset for the government. Revenue expenditure refers to the estimated expenditure of the government in a fiscal year which does not create assets or causes a reduction in liablities. Therefore, expenditure on subsidies is termed as an important item of Revenue Expenditure. |
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