What is Capital Budget and Revenue Budget
In the realm of government financial planning, two crucial components are the Capital Budget and the Revenue Budget. While both contribute to the overall fiscal framework, they have distinct impacts on the government’s assets and liabilities.
The Capital Budget involves transactions that directly influence the government’s assets and liabilities. This budget encompasses both capital receipts and capital expenditures.
In contrast, the Revenue Budget comprises items that do not affect the government’s assets and liabilities. It deals with day-to-day operational finances without altering the overall financial standing of the government.
Revenue Budget | Capital Budget |
---|---|
Revenue receipts are earned through taxes and non-taxes. | Capital receipts lead to a decrease in assets or an increase in liabilities. |
Revenue expenditure covers day-to-day operational expenses. | Capital expenditure influences the creation or reduction of liabilities. |
No impact on government assets and liabilities. | Assets, like infrastructure projects, are part of capital expenditure. |
Q: What is Capital Budget and Revenue Budget?
A: The revenue budget causes no impact on the government’s assets and liabilities, while the capital budget does change the status of the total number of government assets and liabilities.
Kindly share your responses in the comment section!!
Mushrooms are a popular and nutritious food source globally, cultivated in various countries due to…
Durba Banerjee made history as India's first female pilot of Indian airlines, paving the way…
The Indian National Congress (INC) was formed in 1885 to create a platform for political…
The Rajasthan State Cabinet, led by Chief Minister Bhajan Lal Sharma, has approved a significant…
The British government has announced plans to erect a national memorial for Queen Elizabeth II…
In celebration of the birth anniversary of Hockey Legend Major Dhyan Chand and in alignment…