The Prime Minister of India, interacting with Pradhan Mantri Garib Kalyan Anna Yojana (PMGKY) beneficiaries, says that free ration has helped lakhs of poor during COVID pandemic. This is categorized as _____.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Revenue expenditure.
Providing free ration under schemes like Pradhan Mantri Garib Kalyan Anna Yojana (PMGKY) is a recurring, consumption-based expense by the government to provide food security. It does not create any asset or lead to a reduction in liabilities. Hence, it is classified as revenue expenditure.