Revenue Expenditure (Budget):
1. Revenue expenditure of the government refers to expenses incurred on day-to-day functioning of the government.
2. It is recurring in nature as it is incurred regularly.
3. E.g. administration cost, salary, allowances, pensions of the government employees, etc.
4. It does not create any asset to government.
Capital Expenditure (Budget):
1. Capital expense of the government refers to expenses incurred for the development of a country.
2. It is not recurring in nature as it does not incur regularly.
3. E.g. investment in different developmental projects, loans granted to state government, repayment of loan, etc.
4. It makes addition to the assets of the economy.
