✓ Board-verified
Economics · 2026 · 4 marks
Government Budget and the EconomyGovernment Budget – Meaning and its Components4 marksUnderstandshort answer
CBSE 2026 · Region 3 · Set 1 · Q13
(a) Distinguish between Revenue Expenditure and Capital Expenditure with the help of suitable examples.
(a)
Distinguish between Revenue Expenditure and Capital Expenditure with the help of suitable examples.
OR
(b)
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.
All Government Budget and the Economy questions2026 question paperPractice Government Budget and the Economy →
More from Government Budget and the Economy
- Read the following statements: Assertion and Reason (R). Choose the correct option from those given below: Assertion: Borrowing requirements of the…2026
- On the basis of the given information, calculate the values of the following: (i) Fiscal Deficit (ii) Primary Deficit S.No. Items Amount (in ₹ crore)…2024
- “As per the Economic Survey of India 2022 – 23, due to the outbreak of geopolitical conflict, the result was higher international prices for…2025
- Read the following statements carefully: Statement 1: Public goods are those goods for which the payments are made by all the entities in the…2025
- “Consumption of a good by a person does not reduce the amount available for consumption by others. Consumers consuming such goods are known as…2026
- Read the following statements carefully: Statement 1: Foreign aids are the capital receipts for the government. Statement 2: Disinvestments may lead…2025
- (i) Study the following chart carefully and analyse the changing trends in the government expenditure on: (I) Agriculture and Allied Activities (II)…2024
- Identify, which of the following does not represent a public good. (Choose the correct option)2025
CBSE Class 12 Economics past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.