Question

Difference between revenue expenditure and revenue receipt

Answer 1

Capital expenditure is money spent on the purchase of fixed assets or on improvements to fixed assets. Revenue expenditure is the day-to-day running costs of a business. The main difference between these two types of expenditure is the length of time the expenditure is of benefit to the business.

Answer 2

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The difference between Revenue Receipt and Revenue Expenditure is known as Revenue Deficit. In Union Budget 2018-19, Revenue Receipt was estimated to be at Rs 17.25 lakh crore and Revenue Expenditure was estimated to be at Rs 21 lakh crore which worked out to a Revenue Deficit of Rs 4 lakh crore.