A Principal classifies the construction of a new school building as revenue expenditure merely because the payment was m...
Type: MCQ • Marks: 1
A Principal classifies the construction of a new school building as revenue expenditure merely because the payment was made from the annual budget This reasoning is:
Options
A. Correct
B. Incorrect because classification depends on the nature and purpose of expenditure, not merely the annuality of the budget
C. Correct for all Government buildings
D. Mandatory under financial rules
Explanation
Annual budget provision does not itself determine whether an expenditure is capital or revenue.
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UPSC Principal & Vice PrincipalManagement Finance Administration
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