Revenue Expenditure

By: EconomyWatch   Date: 30 June 2010

About The Author

EconomyWatch

The core Content Team our economy, industry, investing and personal finance reference articles.

EconomyWatch, Content Team

 

  • Dot Div
  •      



Revenue expenditure is a reserve of money used by an establishment to acquire or upgrade physical assets. Revenue expenditure is beneficial for the current business year.
Comparison: Revenue expenditure and capital expenditure
Capital expenditure results the increase or acquirement of an asset, whereas revenue expenditure is necessary for the sustenance of earning capacity.
Revenue expenditure: Purposes
Revenue expenditure is the reserve of money used by an establishment to develop or raise physical assets like equipments, industrial buildings or properties. The operations of an establishment include everything from constructing structures to repairing parts of the building.

Revenue Expenditure

ItemsBudget Estimates(In crore of Rupees)1999-20002000-2001 Interest Payments88000101266 Subsidies 2379822800 Grants to State and U.T. Governments819817676 Pensions1013115843 Defence Revenue Expenditure3346440661 Social Services54036187 Postal Deficit8711961 Expenditure of Union Territories without Legislature10221185Grants to Foreign Governments429421Police58996735 Economic Services 6176 7183 Other General Services 5947 6525 Other Expenditure993325Total Revenue Expenditure190331228768
Factors: Revenue Expenditure
Any business establishment incurs an appreciable number of expenses to steadily maintain it's business operations. There are two broad categories of business expenditure a company can incur. The first category of business expenditure comprises items incurred for running everyday operations of the establishment. Examples of day to day operations include expenditure on rent incurred, factory expenses, salary payment to employees, administrative expenses and sales commissions.

The second category of expenditure comprise assets bought by the company. This results in increased productivity and enhanced efficiency of the establishment. Some of the important examples of this kind of expenditure include purchase of office automation equipments, purchase of office vehicles, purchase of furniture and computer equipments.


  • Dot Div
  •      

Most Popular in Indian Budget

Related Links
blog comments powered by Disqus