What is not included in the expenditure of central government?
Expenditure on economic service, expenditure on social and communist services, grant to states are examples of developmental expenditures. Among the given options, defense expenditure is not an example of developmental expenditure.
What is not included in development expenditure?
It refers to those expenditure of the government which does not directly help in economic development of the country. Cost of tax collection, cost of audit, printing of notes, internal law and order, expenditure on defence etc. are treated as non-developmental expenditure.
What is central government expenditure?
Central government expenditure is defined as the central government budget expenditure as reported in the final central government accounts. The responsibility for the provision of public goods and services and redistribution of income is divided between different levels of government.
What are development expenditures?
Developmental expenditure refers to the expenditure of the government which helps in economic development by increasing production and real income of the country. Some people call it productive expenditure because it helps in increasing production and productivity of the economy.
What are the three types of expenditure?
There are three major types of expenses we all pay: fixed, variable, and periodic.
What is an example of developmental expenditure?
(i) Developmental expenditure. It refers to expenditure on activities which are directly related to economic and social development of the country. For instance, expenditure incurred on education, health, housing, agricultural and industrial development, rural development, social welfare, scientific research, etc.
What are examples of capital expenditures?
Examples of capital expenditures
- Buildings (including subsequent costs that extend the useful life of a building)
- Computer equipment.
- Office equipment.
- Furniture and fixtures (including the cost of furniture that is aggregated and treated as a single unit, such as a group of desks)
What is the difference between plan and non plan expenditure?
Plan expenditure is spent on productive asset creation through Centrally-sponsored programmes and flagship schemes, while “non-Plan” refers to all other expenditure such as defence expenditure, subsidies, interest payments, including expenditure on establishment and maintainance activities such as salaries.
What do u mean by plan expenditure?
Plan expenditure is that component of government expenses which helps increase the productive capacity in the economy. It includes outlays for different sectors, such as rural development and education.
Is not plan expenditure?
Non-Plan Expenditure constitutes the biggest proportion of the of the government’s total expenditure. The biggest items of Non-Plan Expenditure are interest payments and debt servicing, defence expenditure and subsidies. Non-Tax Revenue is the recurring income earned by the government from sources other than taxes.
What do you mean by budget expenditure?
Budget Expenditure refers to the estimated expenditure of the government during a given fiscal year. The budget expenditure can be broadly categorized as: (i) Revenue Expenditure. (ii) Capital Expenditure.
What is difference between charged and voted expenditure?
Charged expenditure – the amounts required to meet expenditure charged upon the Consolidated Fund of India & 2. Voted expenditure – the amounts required to meet other expenditure proposed to be made from the Consolidated Fund of India. That means charged expenditure doesn’t require the approval of Parliament.
What are the different types of expenditure?
Expenditure Example
| S. No | Expenditure Type | Expenditure Classification |
|---|---|---|
| 1 | Purchase of raw materials | Revenue Expenditure – Direct |
| 2 | Electricity bills | Revenue Expenditure – indirect |
| 3 | Advertising expenses | Revenue Expenditure – indirect |
| 4 | Direct labor costs | Revenue Expenditure – Direct |
What is capital expenditure in government?
Capital expenditure is the money spent by the government on the development of machinery, equipment, building, health facilities, education, etc. It also includes the expenditure incurred on acquiring fixed assets like land and investment by the government that gives profits or dividend in future.
What are the two types of government expenditure?
There are two types of spending: Current spending, which is expenditure on wages and raw materials. Current spending is short term and has to be renewed each year. Capital spending, which is spending on physical assets like roads, bridges, hospital buildings and equipment.
How do you explain capital expenditure?
A capital expenditure is an amount spent to acquire or significantly improve the capacity or capabilities of a long-term asset such as equipment or buildings. The asset’s cost (except for the cost of land) will then be allocated to depreciation expense over the useful life of the asset.
Is salary a capital expenditure?
Wages, salary, utility bills printing and stationery, inventory, postage, insurance, taxes and maintenance cost, among others. Hence, both capital expenditure and revenue expenditure are vital for the sustainable profitability of a business venture.
Is Depreciation a capital expenditure?
Depreciation expense is used in accounting to allocate the cost of a tangible asset over its useful life. Over the life of an asset, total depreciation will be equal to the net capital expenditure. This means if a company regularly has more CapEx than depreciation, its asset base is growing.
What is capital expenditure budget?
A capital expenditure budget is a formal plan that states the amounts and timing of fixed asset purchases by an organization. This budget is part of the annual budget used by a firm, which is intended to organize activities for the upcoming year.