The budget of the central government is divided into two: revenue budget and capital budget.
Revenue budget involves revenue receipts and revenue expenditure. These expenditures and receipts are related to the day to day functioning of the government.
Expenditure is needed to finance government functions like defense, social services, administration etc and these are the main revenue expenditures.
Similarly, when the government is performing its day today functions, lot of revenue will be accrued to it. Tax revenues and non-tax revenues are the two types of revenue receipts.
