Question

Why are subsidies treated as revenue expenditure ?​

Answer 1

$\huge{\underline{\underline{\mathfrak{Answer:-}}}}$

Subsides are are treated as revenue expenditure by the government, because this expenditure:

☞☞Does not reduce lability of the government , nor

☞☞Adds to assets of the government

Answer 2

subsidies are treated as the revenue expenditure because it does not add any asset to the government and moreover it does not concern for the reducing of the liability.