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Definition: Revenue expenditure refers to day-to-day expenses of a government.
Those expenses of a government, which are incurred on a daily basis are known as its revenue expenditure. It includes salaries and pensions of government employees, expenses on repair and maintenance of government buildings, etc. Typically, revenue expenditures are not considered productive. If a government spends more on the salaries of its employees, it doesn’t improve the welfare of its citizens. It doesn’t even improve the efficiency of a government. Revenue expenditures are more in the category of day-to-day obligations of a government. Therefore, ideally speaking, a government should try to control its revenue expenditures. In India, we often hear the government saying that it can’t provide a lot of jobs to youth. This means that the government has realised that it’s spending too much on the account of revenue expenditure and hence is not willing to spend any more.
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