Question

Which of the following is a component of a state's "revenue expenditure"?

• A. Purchase of new machinery for public sector undertakings
• B. Interest payments on government loans
• C. Capital expenditure on infrastructure projects
• D. Salaries and pensions of government employees

Answer 1

Answer:

D. Salaries and pensions of government employees

• Revenue expenditure is money spent on the day-to-day running of government departments and on providing services to the public.

• Salaries, subsidies, and interest payments fall into this category.