JKSSB Mock Tests

Which of the following statements is correct regarding Classification of Expenditure of government? I. Revenue Expenditure is expenditure incurred for purposes other than the creation of physical or financial assets of the central government. II. Capital expenditure results in creation of physical or financial assets or reduction in financial liabilities.

A. Only I
B. Only II
C. Both I and II
D. Neither I nor II
Answer: Option C
Solution (By JKSSB Mock Tests Team)
Government budgets universally classify primary spending into revenue expenditure (routine, recurring operational costs that build no assets) and capital expenditure (strategic investments explicitly creating assets or clearing structural liabilities).
This Question Belongs to: General knowledge mcqs Economics set 2

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