3. What are the major components of capital and revenue expenditures in the government budget

Major Components of Revenue Expenditure

• Expenses for normal functioning of government departments.
• Expenses for various services.
• Interest payments on debt incurred by the central government.
• Grants given to state governments and local bodies.

Major Components of Capital Expenditure

• Acquisition of land, building, machinery, equipment.
• Purchase of shares by the government.
• Loans and advances by the central government to state/UT governments.
• Loans and advances to PSUs and other parties.

Diagram: BUDGET

• BUDGET
  • Revenue Budget
    • Revenue Receipts
      • Tax Revenue
      • Non-Tax Revenue
    • Revenue Exp.
  • Capital Budget
    • Capital Receipts
    • Capital Exp.