Public expenditure is broadly divided into revenue expenditure (recurring, consumption-oriented) and capital expenditure (asset-creating, investment- oriented). The composition and magnitude of public expenditure reflect the government's priorities and fiscal health, impacting economic growth and development.
Which of the following statements are correct regarding Public Expenditure? 1. Revenue Expenditure is of recurring type which is incurred year after year 2. High revenue expenditure indicates poverty and backwardness of the economy 3. High capital expenditure indicates high private investment of company 4. Capital expenditure results in the acquisition of a tangible or intangible asset or payment liabilities
Asked in GPSC Prelims CSP 2 2022 · Topic: Fiscal Policy & Revenue (Public Expenditure: Classification, trends, and impact on development)
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