Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

The Delhi government initiated a program of training teachers for "Rashtriya Madhyamik Shiksha Abhiyan". How will the expenditure incurred on this be treated?

Options:

Capital expenditure

Revenue expenditure

Non-development expenditure

None of the above

Correct Answer:

Revenue expenditure

Explanation:

It will be considered under "Revenue expenditure" as it is a recurring expense which the government has to bear.

Revenue expenditure do not effect the assets and liabilities status of the government. They are generally of recurring nature.