What is a Performance Budget? Differentiate between Revenue Expenditur

1.	What is a Performance Budget? Differentiate between Revenue Expenditure and Capital Expenditure.
Answer» Since 1973-74 the idea of Performance Budget was introduced by the fiscal authorities in India. Performance budgeting aims at monitoring the progress of projects in terms of their actual physical achievements against the given goals. Hence, evaluation of the expenditure involves the assessment of the progress of the programs included in the project. The expenditure which does not result in the creation of assets is revenue expenditure. The capital expenditure consists of expenditure on acquisition of assets like land, buildings, machinery, equipment, investment in shares, loans and advances granted by Central / Union Govt, to states and Union Territories.

What is a Performance Budget? Differentiate between Revenue Expenditure and Capital Expenditure.

Answer»

Since 1973-74 the idea of Performance Budget was introduced by the fiscal authorities in India. Performance budgeting aims at monitoring the progress of projects in terms of their actual physical achievements against the given goals. Hence, evaluation of the expenditure involves the assessment of the progress of the programs included in the project.

The expenditure which does not result in the creation of assets is revenue expenditure. The capital expenditure consists of expenditure on acquisition of assets like land, buildings, machinery, equipment, investment in shares, loans and advances granted by Central / Union Govt, to states and Union Territories.

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