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CUET Economics 2025 PYQs3 June Shift 1. Free, no login required.

Macro

past year questions, CUET Economics 2025 3 June Shift 1

Government Budget

past year questions, Macro, CUET Economics 2025 3 June Shift 1

Medium

The Prime Minister of India, interacting with Pradhan Mantri Garib Kalyan Anna Yojana (PMGKY) beneficiaries, says that free ration has helped lakhs of poor during COVID pandemic. This is categorized as __________

Solution

✅ Correct Option: 2

Option 1 -> Revenue receipts are government income from taxes, fees, and other sources - not applicable to expenditure on free ration.

Option 2 -> Revenue expenditure is recurring government spending that doesn't create assets, like subsidies and welfare schemes - free ration distribution falls under this category.

Option 3 -> Capital receipts are government income from loans or asset sales - not related to welfare expenditure.

Option 4 -> Capital expenditure creates physical assets like infrastructure - free ration is consumption expenditure, not asset creation.

Hence, Revenue expenditure -> PMGKY involves distribution of free food grains to beneficiaries, which is a subsidy/welfare expenditure. It is recurring in nature, does not create any physical asset, and is meant for consumption purposes. Such government spending on welfare schemes, subsidies, and social security programs is classified as revenue expenditure as per budgetary classification. -> correct

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