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
(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.