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Which of the following are the revenue expenditure of the government?
1. Ayushman Bharat Yojana
2. Purchasing of S-400 defence system from Russia
3. Building Railway Infrastructure
Which of these statements is/are correct?
- a)1 and 2 Only
- b)2 and 3 Only
- c)1 and 3 Only
- d)All of them
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Which of the following are the revenue expenditure of the government?...
The revenue expenditure of the government refers to the expenses incurred by the government in its day-to-day operations and the provision of public goods and services. It does not result in the creation of assets or reduction in liabilities. Let us analyze the given options to identify the revenue expenditure of the government:
1. Ayushman Bharat Yojana: Ayushman Bharat Yojana is a flagship health insurance scheme launched by the Government of India. Under this scheme, eligible individuals are provided with health insurance coverage for hospitalization expenses. The government bears the cost of the insurance premium, making it a revenue expenditure. Therefore, option 1 is correct.
2. Purchasing of S-400 defence system from Russia: The purchase of the S-400 defence system from Russia involves the acquisition of a capital asset, which is a long-term investment for the government. It is a capital expenditure rather than a revenue expenditure. Therefore, option 2 is incorrect.
3. Building Railway Infrastructure: Building railway infrastructure involves the construction of railways, tracks, stations, and other related infrastructure. This is a capital expenditure as it leads to the creation of a long-term asset for the government. Therefore, option 3 is incorrect.
Based on the above analysis, the correct option is A: 1 and 2 Only. The Ayushman Bharat Yojana involves revenue expenditure as the government incurs expenses in providing health insurance coverage. However, the purchase of the S-400 defence system and building railway infrastructure are capital expenditures as they involve the acquisition of long-term assets.
In conclusion, revenue expenditure refers to the day-to-day expenses of the government, and the Ayushman Bharat Yojana falls under this category. On the other hand, purchasing the S-400 defence system and building railway infrastructure are capital expenditures as they involve the acquisition of long-term assets.
1. Ayushman Bharat Yojana: Ayushman Bharat Yojana is a flagship health insurance scheme launched by the Government of India. Under this scheme, eligible individuals are provided with health insurance coverage for hospitalization expenses. The government bears the cost of the insurance premium, making it a revenue expenditure. Therefore, option 1 is correct.
2. Purchasing of S-400 defence system from Russia: The purchase of the S-400 defence system from Russia involves the acquisition of a capital asset, which is a long-term investment for the government. It is a capital expenditure rather than a revenue expenditure. Therefore, option 2 is incorrect.
3. Building Railway Infrastructure: Building railway infrastructure involves the construction of railways, tracks, stations, and other related infrastructure. This is a capital expenditure as it leads to the creation of a long-term asset for the government. Therefore, option 3 is incorrect.
Based on the above analysis, the correct option is A: 1 and 2 Only. The Ayushman Bharat Yojana involves revenue expenditure as the government incurs expenses in providing health insurance coverage. However, the purchase of the S-400 defence system and building railway infrastructure are capital expenditures as they involve the acquisition of long-term assets.
In conclusion, revenue expenditure refers to the day-to-day expenses of the government, and the Ayushman Bharat Yojana falls under this category. On the other hand, purchasing the S-400 defence system and building railway infrastructure are capital expenditures as they involve the acquisition of long-term assets.
Community Answer
Which of the following are the revenue expenditure of the government?...
Revenue Expenditure: All expenditures incurred by the government are either of revenue kind or current kind or compulsive kind. The basic identity of such expenditures is that they are of a consumptive kind and do not involve the creation of productive assets. A broad category of things that fall under such expenditures in India are:
(i) Interest paid by the government on the internal and external loans;
(ii) Salaries, Pension and Provident Fund paid by the government to government employees;
(iii) Subsidies forwarded to all sectors by the government;
(iv) Defence expenditures by the government;
(v) Postal Deficits of the government;
(vi) Law and order expenditures (i.e., police & paramilitary);
(vii) Expenditures on social services (includes all social sector expenditures as education, health care, social security, poverty etc)
(viii) Grants given by the government to Indian states and foreign countries.
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Which of the following are the revenue expenditure of the government? 1. Ayushman Bharat Yojana2. Purchasing of S-400 defence system from Russia3. Building Railway InfrastructureWhich of these statements is/are correct?a) 1 and 2 Onlyb) 2 and 3 Onlyc) 1 and 3 Onlyd) All of themCorrect answer is option 'A'. Can you explain this answer?
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