Is the following, a revenue expenditure or capital expenditure in the context of government budget?

cbse-class-12

#1

Is the following, a revenue expenditure or capital expenditure in the context of government budget? Give reason.
(i) Expenditure on collection of taxes
(ii) Expenditure on purchasing computers


#2

(i) Expenditure on collection of taxes It is a revenue expenditure, as it does not reduce any government liability nor increases government asset.
(ii) Expenditure on purchasing computers It is a capital expenditure, as it creates physical assets for the government.