Which kind of expenses do not form part of revenue expenditure of government ?
Repayment of loan principal reduces the government's financial liabilities and is therefore classified as Capital Expenditure, whereas interest payments, salaries, pensions,…
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Which kind of expenses do not form part of revenue expenditure of government ?
Answer and explanation
Correct answer C
Repayment of loan principal reduces the government's financial liabilities and is therefore classified as Capital Expenditure, whereas interest payments, salaries, pensions, subsidies, and running expenses of public services are Revenue Expenditures.
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