Distinguish Between Revenue Budget And Capital Budget

The difference between capital expenditure and revenue expenditure are expained in tabular form.

Distinguish between revenue budget and capital budget. 11000 revenue exp 5000 capital exp minus 10000 revenue rec 5000 ndcr 1000. This consists of capital receipts and payments. The fiscal deficit is the difference between the government s total expenditure both revenue and capital and its total receipts excluding borrowings. Both these type of budgets are very important for the success and.

The revenue receipts include both tax revenue like income tax excise duty and non tax revenue like interest receipts profits. Ii revenue budget include all such financial transactions which do not create any asset or liability for the government. The revenue budget comprises revenue receipts and expenditure met from these revenues. Capi tal budget on the other hand comprises capital receipts and capital.

All grants given to state governments and other parties are also treated as revenue expenditure even though some of the grants may be for creation of assets. Revenue accounts cover those items which are of recurring nature and are non redeemable. The first and foremost difference between the two is capital expenditure generates future economic benefits but the revenue expenditure generates benefit for the current year only. Broadly speaking expenditure which does not result in the creation of assets is treated as revenue expenditure.

The differences between capital expenditures and revenue expenditures include whether the purchases will be used over the long term or. Follow report by cakash225 18 02 2018 log in to add a comment. What is the capital budget. Revenue budget consists of the revenue receipts of the government and the expenditure met from such revenues whereas the capital budget consists of capital receipt and payments.

Fd total expenditure revenue receipts non debt creating capital receipts. Key difference capital budget vs revenue budget the key difference between capital budget and revenue budget is that capital budget assesses the long term financial viability of investments by comparing future cash inflows and outflows whereas revenue budget is a forecast on revenue that will be generated by the company. I revenue budget comprises only revenue receipts and revenue expenditures of the government while capital budget comprises of capital receipts and capital expenditures of the government.