Regular and Capital Expenditure in Government Budget

It has been stated earlier that the scope of government expenditure has increased enormously. In the past, the main concern was on security and maintaining law and order. But the modern states are welfare states. Therefore they perform many functions related to the welfare of their citizens.

 

In Nepal, the government’s expenditure has been classified into two parts since 1958 by the first elected government, as follows:

1. Current Expenditure

Expenditures, related to regular activities and administration expenditures like payment of salaries of security administration, public administration, social and economic service, and other administrative expenses and interest of loans, etc. In short, all the administrative expenses are current expenditures. 

2. Capital Expenditure

Expenditures done for capital goods or the expenditures intended for the future is called capital expenditure. This expenditure is also known as development expenditure.