It refers to estimated expenditure of the government on its development and non-development programme or its planned and non-planned programme during a particular fiscal year.
Budget expenditure refers to the planned spending of funds by an organization, or government during a specific period. It is a crucial aspect of financial planning and management, helping to allocate resources efficiently and achieve financial goals. Here are some key points related to budget expenditure:
Revenue expenditure
Revenue receipts are those receipts which do not create any assets nor reduce the liabilities of the government.
- These expenditures do not create any assets for the government. Ex. Provide old age pension, salaries or scholarship etc.
- These expenditures do not cause any reduction in the liability of the government. Ex. payment of interest on loan.
Capital expenditure
Capital expenditures are those receipts which do create additional assets for the government or cause a reduction in the liabilities of the government.
- These expenditures create assets for the government. Ex. Purchase shares of the domestic or multinational companies.
- These expenditures cause reduction in liability of the government. Ex. Repayment of loan.