STRUCTURE OF PUBLIC EXPENDITURE
Expenditure is divided into capital and recurrent
1. Capital Expenditure: Capital expenditure is regarded as a non-recurrent expenditure. They are expenses incurred from executing of projects which are of a permanent nature. Examples include money spent on building; schools, roads, hospitals, bridges, etc.
2. Recurrent Expenditure: This refers to those expenses which are repeated on a yearly basis. Recurrent expenditure deals with those expenditures which are not permanent, they include money spent on payment of civil servants’ salaries, money spent on the payment of things like rent, interest by the government.
ROLES OF BUDGET IN MODERN ECONOMY