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Revenue expenditures are those expenditures which neither create any asset nor
reduce any liability. Examples are expenditure on the maintenance of law and
order, expenditure on subsidies, pay and allowances of ministers, governors,
judges.
Capital expenditures are those expenditures which either create assets for the
government or reduce liabilities of the government. Examples are expenditure on
the construction of a road, expenditure on the construction of a dam, expenditure
on the repayment of a loan from IMF.
marlinbito answered the question on May 12, 2018 at 13:19
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