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Instruments of Fiscal Policy - Government Expenditure (for UPSC CSE)
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So far in this course, Ayussh has introduced us to the fiscal policy and has defined its objectives. In this lesson, he will be explaining majorly about the instruments of the fiscal policy. He sheds light on the classifications of government expenditure which are revenue expenditure and capital expenditure. One will also find a detailed elaboration of the types of expenditures.

Ayussh Sanghi is teaching live on Unacademy Plus

Ayussh Sanghi
Passionate Educator - CSE / Other Govt Exams [Peep into my Unacademy Plus Courses & experience awesome learning.]

Unacademy user
sir apako Hindi mai bi course banana cahiye
sir, how does loan and advances given by the central government benefit in a long term. if it is through interest then won't it be a type of revenue .
Abhishek kumar
5 months ago
loans to state gov. or PSU => investments into highways, new metros, facilitating modern equipments etc. ...these all are going to reap long term benefits
thank you sir !!@!@!!@@
good....but confusing . please explain in a lucid way and prepare slides more easily to understand.
  1. FISCAL POLICY Government Expenditure PART 3 Government Esxpenditure BY AYUSSH SANGHI


  2. ABOUT ME >Passionate about Teaching >Taught at most reputed Civil Services Institutes >CA, Lawyer >Hit "Contribute to Ayussh" Follow me on: https://unacademy.in/user/ AyusshSanghi


  3. Government Expenditure * It is also known as Public Expenditure. It is also known as Public Expenditure. Government expenditure can be classified under the following heads: Revenue Expenditure, k Capital Expenditure


  4. Capital Expenditures * CE of the government are those expenditures which result in creation of physical or financial assets or reduction in financial liabilities.


  5. Capital Expenditures These include: expenditure on acquisition of land, k building, sk equipment, investment in shares.


  6. Capital Expenditures These also include: *loans and advances by the central government to: state government and * union territory governments, PSUs and k other parties.


  7. Revenue Expenditures RE is expenditure incurred for purposes other than the: creation of physical or financial assets s of the central government. of the central government.


  8. Revenue Expenditures It relates to: expenses incurred for the normal functioning of the government departments and various services, interest payments on debt incurred by the government, and grants given to state governments and other parties


  9. Types of Expenditures The Budget documents classify total expenditure into the following: k plan expenditure and non-plan expenditure.


  10. Types of Expenditures The Budget documents classify total expenditure into the following: plan expenditure and non-plan expenditure. Both Capital and Revenue expenditure is also categorised as plan and non-plan in the budget documents.


  11. Non - Plan Capital Expenditure It includes: Defence Equipments and modernisation of current ones, Loans to Public sector companies and Loans to states and union territories