(ii) Revenue budget include all such financial transactions which do not create any asset or liability for the government. On the other hand, transactions in capital budget do create assets or liabilities for the government.
What is revenue budget and revenue capital?
Revenue and Capital Budget This is called the Revenue Budget and is the amount of money the Council requires to provide its services during the year, taking into account grants it receives from the Government.
What is meant by budget of the government give two differences between revenue expenditure and capital expenditure?
1 Distinguish between revenue expenditure and capital expenditure. Revenue expenditure refers to the expenditure that neither creates assets nor reduces the liability of the government. Capital expenditure refers to the expenditure that either creates an asset or reduces the liability of the government.
What are the two components of capital budget?
Thus, capital budget is an account of assets and liabilities of the government which takes into consideration changes in capital. The structure (or components) of a government budget broadly consists of two parts — Budget Receipts and Budget Expenditure as shown in the following chart.
What are the components of capital budget?
Parts of Capital Budget: Capital budget is divided into two parts — capital receipts and capital expenditure. Capital receipts refer to incoming cash flows. They can be both non-debt and debt receipts. Loan from the general public, foreign governments and RBI form a major part of capital receipts.
What is the other name of revenue budget?
Revenue expenditure is expenditure for the normal running of government departments and various services, interest charges on debt incurred by government, subsidies and so on. Broadly speaking, expenditure which does not result in the creation of assets is treated as revenue expenditure.
What were the two main sources of revenue?
Explanation: ➡Taxes and trade were the two main sources of revenue.
