What is not included in revenue expenditure?

purchase and sale of machinery is not a day to day activity unless it is a business in machinery dealing and hence, it is not a revenue expenditure.

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Which expenditure is non-plan expenditure?

Non-Plan expenditure is a generic term, which is used to cover all expenditure of Government not included in the Plan. It includes both developmental and non-developmental expenditure. Part of the expenditure is obligatory in nature e.g. interest payments, pensionary charges and statutory transfers to States.

Which item is not included in plan expenditure under revenue expenditure?

Non-Plan Expenditure constitutes the biggest proportion of the of the government’s total expenditure. The biggest items of Non-Plan Expenditure are interest payments and debt servicing, defence expenditure and subsidies. For defence services, both revenue and capital expenditure are incurred.

What all are included in revenue expenditure?

Types of Revenue Expenditures

Salaries and employee wages.
Any overhead expense, such as salaries for the corporate office, which typically fall under selling, general, and administrative expenses (SG&A)
Research and development (R&D)
Utilities and Rent.
Business travel.
Property taxes.

What is non-plan revenue?

Non-plan revenue expenditure is accounted for by interest payments, subsidies (mainly on food and fertilisers), wage and salary payments to government employees, grants to States and Union Territories governments, pensions, police, economic services in various sectors, other general services such as tax collection.

Which of the following factors is not included in the non-plan expenditure?

Central assistance to states is not a part of non-plan expenditure on the revenue side.

Which of the following item is not included in non-plan revenue expenditure?

Electrification is not a part of the non-plan expenditure of central government. Non-plan expenditure is the revenue expenditure of the government which also includes capital expenditure.

Which of the following factor is not included in non-plan expenditure?

Which of the following is NOT a non tax revenue?

The correct answer is Interest tax. It is made up of two words revenue and receipts. Any income that does not generate a liability is revenue.

Which of the following expenses is not deferred revenue expenditure?

Legal expenses incurred in defending a suit for breach of contract for supply of goods does not satisfy the prerequisites of a deferred revenue expenditure.

What is plan and non-plan revenue expenditure?

Non-plan expenditure is what the government spends on the so-called non-productive areas and is mostly obligatory in nature. It includes salaries, subsidies, loans and interest. Plan expenditure, on the other hand, pertains to the money set aside for productive purposes like various projects of ministries.

Which of the following is non development expenditure?

Cost of tax collection, cost of audit, printing of notes, internal law and order, expenditure on defence etc. are treated as non-developmental expenditure.

What are planned and non planned expenditure?

Which of the following is an example of plan expenditure?

Items of plan expenditure are: (i) expenditure on electricity generation, (ii) irrigation and rural developments, (iii) construction of roads, bridges, canals and (iv) science, technology, environment, etc. It includes both revenue expenditure and capital expenditure.

What are examples of non-tax revenues?

There are various services provided by the government that become sources of non-tax revenue, such as police services, electricity, municipal services, etc. These sources become a medium of non-tax revenue for the state government concerned.

Which of the following is non-tax revenue Mcq?

Interest receipts and dividends and profits are the examples of non-tax revenue components of the Union Budget of India, that means, tax revenue cannot be collected by the government from these items.

What are deferred revenue expenditures give examples?

Deferred revenue expenditure refers to those expenses which will be incurred in the current accounting period but the benefits of the expenses will be applicable over several accounting periods. Example: Expenditure on marketing for launching a new product.

What is deferred revenue example?

Deferred revenue is money received in advance for products or services that are going to be performed in the future. Rent payments received in advance or annual subscription payments received at the beginning of the year are common examples of deferred revenue.

Which is not a non-tax revenue?

What are the main types of non-tax revenue?

The estimates of Non-Tax Revenue receipts from various sources such as return on assets in form of dividend and profits, interest, fees, fines and miscellaneous receipts collected in the exercise of sovereign functions, regulatory charges and license fees and user charges for publicly provided goods and services.

Which of the following is a Non-Plan Expenditure?

What is the meaning of non tax revenue?

Non-Tax Revenue is the recurring income earned by the government from sources other than taxes. Definition: This is largely the revenue expenditure of the government, although it also includes capital expenditure. It covers all expenditure not included in the Plan Expenditure.

Why is plan and Non-Plan Expenditure abolished?

Why is Plan and Non-Plan Expenditure abolished? The main reason behind the abolishing Plan and Non-Plan expenditure by the Government of India was the C Rangarajan Committee report of 2011. The new classification will assist the Government to create a proper link between Government spendings, earnings, and outcomes.

What are the two components of expenditure?

Verify Now There are two components of expenditure – plan and non-plan. Of these, plan expenditures are estimated after discussions between each of the ministries concerned and the Planning Commission.