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Economics · 2026 · 4 marks
Government Budget and the EconomyGovernment Budget – Meaning and its Components4 marksUnderstandshort answer
CBSE 2026 · Region 3 · Set 1 · Q13
Distinguish between Revenue Expenditure and Capital Expenditure with the help of suitable examples.Using suitable examples, distinguish between Revenue Receipts and Capital Receipts.
Distinguish between Revenue Expenditure and Capital Expenditure with the help of suitable examples.
Using suitable examples, distinguish between Revenue Receipts and Capital Receipts.
Marking-scheme solution
Revenue expenditure is the expenditure of the government that neither leads to creation of assets nor reduction in liabilities of the government.
For example: Salaries paid to government employees.
Whereas;
Capital expenditure is the expenditure of the government that either leads to creation of assets or reduction in liabilities of the government.
For example: Construction of flyovers.
Revenue receipts are the receipts of the government that neither lead to increase in liabilities nor reduction in assets of the government.
For example: Taxes received by the government.
Whereas;
Capital receipts are the receipts of the government that either lead to increase in liabilities or reduction in assets of the government.
For example: Proceeds from disinvestment.
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