Read the following statements carefully and choose the correct alternatives given below Stateme...........

Economics (CUET) Government Budget and Economy

Read the following statements carefully and choose the correct alternatives given below:

Statement 1: Revenue Expenditure is expenditure incurred for purposes other than the creation of physical or financial assets of the central government.

Statement 2: Revenue Expenditure relates to those expenses incurred for the normal functioning of the government departments. Alternatives:

Both the statements are true.

Both the statements are false.

Statement 1 is true and Statement 2 is false.

Statement 2 is true and Statement 1 is false.

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Explanation:

34Option (1) is correct.
Explanation: Revenue Expenditure is expenditure incurred for purposes other than the creation of physical or financial assets of the central government. It relates to those
expenses incurred for the normal functioning of the government departments and various services, interest payments on debt incurred by the government, and grants given to state governments and other parties, even though some of the grants may be meant for creation assets.