Revenue Expenditure in the budget includes:

The correct answer is: Salaries, pensions, interest payments.

Revenue expenditure is the expenditure incurred by the government on the payment of salaries, pensions, interest on loans, subsidies, and other non-developmental activities. It is the expenditure that is incurred on the day-to-day running of the government.

The other options are not revenue expenditure.

• Construction of roads, bridges, schools is capital expenditure. It is the expenditure that is incurred on the creation of assets, such as roads, bridges, schools, etc.
• Purchase of machinery and equipment is capital expenditure. It is the expenditure that is incurred on the purchase of assets, such as machinery and equipment.
• Loans and subsidies are also capital expenditure. They are the expenditure that is incurred on the lending of money to individuals or businesses, or on the provision of subsidies to individuals or businesses.