Question : Which of the following is a revenue expenditure?
Option 1: Loans given to union territories
Option 2: Expenditure on construction of metros
Option 3: 10% shares purchase by the government in a private company
Option 4: Salary paid Army officers.
Correct Answer: Salary paid Army officers.
Solution : Salary paid to army officer is a revenue expenditure as it neither create any assets nor reduces any liability. Rest of the three are part of capital expenditure . Hence Option D is correct.
Option 1: Expenditure on building a bridge
Option 2: Expenditure on construction of flyovers
Option 3: Repayment of loans
Option 4: Pension paid to retired government employee
Question : Which of the following is a capital expenditure?
Option 1: Salary paid army officer.
Option 2: Grants given by central government to state government
Option 3: Interest paid on nation death
Option 4: Expenditure on construction of Metro.
Option 1: Expenditure on scholarship
Option 2: Expenditure on purchasing computers
Option 4: Amount borrowed from USA repaired
Question : From the following data calculate Revenue deficit- Tax revenue- 1050 Revenue expenditure- 2000 Non-tax revenue- 200 Recovery of loans- 120 Capital expenditure- 500 Disinvestment- 50 Interest payments- 20
Option 1: 550
Option 2: 650
Option 3: 750
Option 4: 850
Option 1: Expenditure on subsidies
Option 2: Defence capital equipment purchased from Germany
Option 3: Expenditure on construction of school building
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