In the budget, the expenditures are divided into two parts which are capital and revenue. So, when an expenditure made adds value to the asset of the nation it is termed as capital expenditure. For example - expenses made for the construction of roads as it added to the infrastructure of the nation. Also, capital expenditures are non-recurring in nature. Whereas, revenue expenditures are recurring, that is they keep on occurring year after year and don't add any value to the assets of the nation. For example - the salary of government employees.