Question

Describe the items of Revenue Budget and Capital Budget of the Government.

Hint:

The revenue budget deals with day-to-day operations, while the capital budget is concerned with long-term investments and borrowings.

Answer 1

Revenue Budget:  \[\begin{array}{rl} \bullet & \text{Revenue Receipts: Taxes (direct and indirect), non-tax revenues, grants, etc.} \\ \bullet & \text{Revenue Expenditure: Salaries, interest payments, subsidies, pensions, and defense expenses.} \\ \end{array}\] 

Capital Budget: The capital budget relates to long-term investments and financial activities.  The main items include: \[\begin{array}{rl} \bullet & \text{Capital Receipts: Loans, borrowings, disinvestment, recovery of loans.} \\ \bullet & \text{Capital Expenditure: Infrastructure development, machinery, long-term investment in projects, and repayments of loans.} \\ \end{array}\]