SSC CHSL 2025 PYQ — Question 96

The correct answer is Option 3: Both 1 and 2.
Explanation:
In the context of the budget, Revenue Expenditure refers to government spending that neither results in the creation of any asset nor leads to a reduction in the government's liabilities. This expenditure is incurred to maintain the general functioning and services of the government.
1. Salaries of Government Employees: This constitutes revenue expenditure because it is paid on a regular basis to facilitate the day-to-day administrative services. It does not result in the creation of any physical asset.
2. Pensions for Government Employees: This also falls under revenue expenditure, as it represents the fulfillment of the government's past obligations and does not generate any future income-yielding assets.
Difference between Revenue Expenditure and Capital Expenditure (Quick Revision):

• Revenue Expenditure:
• This includes salaries, pensions, interest payments on loans, subsidies, and the maintenance of defense services.
• It is recurring in nature—meaning it is incurred repeatedly.
• Capital Expenditure:
• This leads to the creation of assets (such as the construction of roads, schools, and hospitals).
• It also includes the repayment of loans (as this results in a reduction of liabilities).

Important Questions for Upcoming Examinations:
Question: What type of expenditure is the interest paid on loans taken by the government?
Answer: Revenue Expenditure.
Question: What type of expenditure would the construction of a new flyover be considered?
Answer: Capital Expenditure.
Question: Under which category would the rations provided to soldiers within the defense budget fall?
Answer: Revenue Expenditure.