Revenue expenditure of a local government includes purchase of
Answer Details
Revenue expenditure of a local government includes the purchase of drugs.
Revenue expenditure refers to the expenses incurred by a government or organization in the course of its normal business operations that are intended to maintain or increase revenue. These expenses are usually incurred repeatedly and are of a short-term nature. The purchase of drugs is a recurring expense incurred by a local government in the provision of healthcare services to its citizens. These drugs are used in the treatment of various illnesses and are usually bought on a regular basis, making them a revenue expenditure.
On the other hand, capital expenditures are long-term investments made by a government or organization to acquire assets that will be used over an extended period. Examples of capital expenditures in healthcare facilities include the purchase of x-ray machines, incubators, and theatre equipment, which are used over a long period and are not purchased on a regular basis.