In the context of public expenditure, 'Revenue Expenditure' is characterised by:
A. Reduction of liabilities only
B. No creation of assets or reduction of liability
C. Long-term capital formation
D. Creation of assets
Answer: Option B
Solution (By JKSSB Mock Tests)
Revenue expenditure is incurred for the normal running of government departments and does not result in the creation of assets or reduction of liabilities.
Explanation:
In a progressive tax system, the tax rate increases with an increase in the taxable income, placing a higher burden on higher-income groups.
No comments yet. Be the first to start the discussion!