Full formGovernment & Exams
REBstands forRevenue Expenditure Budget
Full Form of REB
What is REB?
The Revenue Expenditure Budget (REB) refers to the portion of a government's budget that covers recurring expenses necessary for the day-to-day operations and provision of services. In India, REB includes salaries of government employees, subsidies on food, fuel and fertilisers, interest payments on public debt, defence revenue expenditure, and grants to states and union territories. Unlike capital expenditure which builds assets, REB does not create physical assets or reduce liabilities. It is an integral part of the Union Budget presented annually by the Finance Minister, and also appears in state budgets. Understanding REB is crucial for analysing fiscal health and the government's spending priorities. For competitive exams like UPSC, Banking, and SSC, questions often test the distinction between revenue and capital expenditure, and the impact of high REB on fiscal deficit. The size of REB in India has grown significantly over the years, driven by rising subsidy bills and interest payments, making it a key indicator for policy evaluation and economic reforms.
REB का फुल फॉर्म
राजस्व व्यय बजट
Example
The Finance Minister announced that the REB for the upcoming fiscal year will increase by 8%, primarily due to higher allocation for food subsidies and salary revisions.
REB — frequently asked questions
What is the full form of REB?
REB stands for Revenue Expenditure Budget. It is the part of a government's budget that covers recurring expenses like salaries, subsidies, and interest payments.
How is REB different from capital expenditure?
REB includes expenses that do not create assets (e.g., salaries, subsidies), while capital expenditure is used to acquire or create assets (e.g., building roads, bridges). High REB can worsen the fiscal deficit.
Why is REB important for UPSC and banking exams?
Questions on REB test candidates' understanding of fiscal policy, budget components, and their impact on the economy. It is a recurring topic in UPSC prelims, mains, and banking awareness sections.