Distinguish between Revenue Expenditure and Capital Expenditure.
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Revenue expenditure:
Revenue expenditure is expenditure incurred for the normal functioning of the government. Which does not create liabilities or reduce the assets of the govt.
It can be further classified into plan revenue expenditure and non-plan revenue expenditure.
Capital expenditure:
This expenditure creates physical or financial assets or decreases the liability of the government. Capital expenditure can be further classified into plan capital expenditure and non-plan capital expenditure.