Budget Expenditure – Meaning, types, formulas class 12

Looking for what is budget expenditure its meaning, definition, types, and formulas, examples of class 12.

Budgeted Expenditure topic is concerned with Government Budget and the Economy of Macro economics class 12

What is Budget (Budgeted) Expenditure in Government Budget Class 12

Budgeted expenditure refers to the estimated expenditure expected to be incurred under various heads.

In the Indian Government’s budget, It is classified into two categories:

Types of Budget Expenditure in Government Budget class 12

1. Revenue Expenditure
2. Capital Expenditure

What is Revenue Expenditure in government budget

Revenue expenditure is the expenditure that does not lead to any creation of assets or reduction in liabilities.

For example,

1. Expenditure on salaries,
2. pensions, interest,
3. subsidies, grants etc.,

What is Capital Expenditure in government budget

Capital expenditure is that which leads to the creation of assets or leads to a reduction in liabilities.

For example,

1. Expenditure on land,
2. building, machinery,
3. purchase of shares (Equity),
4. lending money like loans to state government,
5. foreign government