The two basic elements of any budget are the revenues and expenses. In the case of the government, revenues are derived primarily from taxes. Government expenses include spending on current goods and services, which economists call government consumption; government investment expenditures such as infrastructure investment or research expenditure; and transfer payments like unemployment or retirement benefits. There is another way to understand element of budget. These are receipts and expenditures. Receipts are of two types, revenue receipt and capital receipt. Same way expenditures are of two nature, revenue and capital expenditure
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