SSC CHSL 2025 PYQ — Question 91

The correct answer is Option 1: Revenue Expenditure.

Explanation:

• In the context of the government budget, expenses incurred on salaries, pensions, interest payments, and defense services are classified under Revenue Expenditure.
• What is Revenue Expenditure? It refers to government spending that neither creates any physical or financial asset nor reduces the government's liabilities. It is essential for the government's routine functioning and for the maintenance of public services.
• Characteristics:
• It is recurring in nature; that is, the government has to incur this expense repeatedly (typically on a monthly or annual basis).
• In the case of defense services, the salaries and maintenance costs of soldiers constitute Revenue Expenditure, whereas the purchase of new fighter jets or weaponry would be classified as 'Capital Expenditure.'

Important Questions for Upcoming Exams:
Question: Under which category does the 'Interest Payment' on loans taken by the government fall?
Answer: Revenue Expenditure.
Question: What is the government expenditure incurred on 'Subsidies' called?
Answer: Revenue Expenditure.
Question: What does the 'Fiscal Deficit' indicate?
Answer: The government's total borrowing requirement.