Revenue Expenditure vs Capital Expenditure — Difference (with Table)
Revenue Expenditure vs Capital Expenditure compared side by side — a 6-row comparison table and 4 key points. Class 11 Social Science, free and no sign-up.
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TL;DR: Revenue Expenditure vs Capital Expenditure compared side by side — a 6-row comparison table and 4 key points. Class 11 Social Science, free and no sig…
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The main difference between Revenue Expenditure and Capital Expenditure: Revenue expenditure is spending on current consumption and running government. Capital expenditure is spending on creating productive assets and infrastruc
Revenue Expenditure vs Capital Expenditure — Comparison Table
| Basis | Revenue Expenditure | Capital Expenditure |
|---|---|---|
| Nature | Current period spending | Long-term investment |
| Benefit Period | Consumed in same year | Benefits multiple years |
| Asset Creation | Does not create assets | Creates productive assets |
| Example | Salaries, supplies, utilities | Building roads, dams, schools |
| Impact | Reduces current budget surplus | Increases national wealth |
| Depreciation | Not applicable | Assets depreciate over time |
Key Points
- Revenue expenditure is necessary for daily government operations
- Capital expenditure creates infrastructure for future growth
- Both are essential for balanced government budget
- Capital expenditure has long-term economic benefits