Q. Which of the following is/are part of revenue expenditure?
1.Interest payments
2.Salaries and pensions
3.Subsidies
How many of the statements given above are correct?
Answer: C
Notes:
Explanation: Revenue Expenditure refers to all expenditures incurred by the government that do not create any asset or impact its liabilities. It is synonymous with maintenance and consumption expenditure.
It includes Interest payment by the government on all internal and external loans, Salaries, pension and provident fund paid to the government employees, Subsidies forwarded to all sectors by the government, Grants given by the government to Indian states and foreign Nations etc.
Source: FORUMIAS
