Question

What is the difference between recurrent expenditure and capital expenditure.

Answer 1

Difference between recurrent expenditure and capital expenditures is;

• Recurrent expenditure – refers to regular expenses incurred by the government in the provision of goods and services e.g. salaries, fueling gov‘t vehicles, servicing public debt etc.
• Capital expenditure - refers to government spending that goes into financing specific projects such as construction of roads, railway lines, airports etc.