Question

Which is second largest revenue expenditure of central government in india?

Answer 1

An expenditure that neither creates assets nor reduces a liability is termed as revenue expenditure. Some of the  examples are  salaries of employees, interest payment on past debt, subsidies, pension, etc. These are financed out of revenue receipts.

The second largest revenue expenditure is  the interest payment.

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Answer 2

Answer:

The second-largest revenue expenditure of the 'central government' in India is the interest payment.

It is incurred for the running of a business, and it is 'incurred for earning profits'.

Its benefit is exhausted within the year, and it is debited to related expense account. It is an expense account.

Explanation:

Main Sources of Government Revenue in India:

1. GST

2. Income tax

3. Corporation Tax

4. Gift Tax

5. Taxes on petroleum

6. Natural resources