Macro A2 - Public Expenditure Flashcards

1
Q

Capital expenditure

A

Capital expenditure refers to spending on long-term assets, such as infrastructure projects, equipment, and property. This type of spending is designed to create or improve a government’s stock of productive assets, and is typically considered to be a long-term investment that will generate benefits over a number of years.

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2
Q

Current expenditure

A

Current expenditure, on the other hand, refers to spending on goods and services that are consumed in the same year that they are purchased. This type of spending includes things like salaries and wages, day-to-day operating expenses, and social welfare programs.

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