• Government expenditure is expenditure of the government spending on state affairs.
• Government expenditure according to funcational classification is shown on the flow chart below:

Current Expenditure

• The expenditure on carrying out of all government services is known as current expenditure.
• Ex:
  • Salaries
  • Stationary
  • Rent
  • Transport costs
  • Charges on Electricity
  • Telecommunication

Capital Expenditure

• The expenditure on the production of capital goods, is known as capital expenditure.
• Ex:
• Office furniture
• Office appliances
• Buildings
• Vehicles
• Construction of roads

Large scale Infrastructural development Projects

• Gama Neguma
• Southern Province rural development projects
• Small scale irrigation projects
• Rehabilitation and provincial government projects