Revenue Expenditure
Expenditure Beginnerराजस्व व्यय
Definition
Revenue expenditure is spending that does not result in creation of assets or reduction of liabilities. It includes salaries, pensions, interest payments on debt, subsidies, and grants to states and other bodies. Revenue expenditure is recurring and consumed within the current financial year.
How Revenue Expenditure Appears in India's Budget
Revenue expenditure for 2026-27 is estimated at Rs 41.25 lakh crore, about 77% of total expenditure.
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Why Revenue Expenditure Matters
Understanding revenue expenditure is essential for anyone following government finances, preparing for competitive exams, or analysing India's economic policy. This concept directly affects how the government allocates resources and plans its fiscal strategy.
In the context of India's Union Budget 2026-27, with a total size of Rs 53.47 lakh crore, terms like revenue expenditure help citizens and analysts evaluate whether the government is on the right fiscal path. The numbers in the budget are only meaningful when one understands the underlying concepts.
For UPSC aspirants, revenue expenditure is frequently tested in both Prelims and Mains, particularly in Paper III (Economic Development). For CA and MBA students, this concept appears in public finance and macroeconomics courses.
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