Recurrent expenditure is the type of expenditure that happens repeatedly on daily, weekly or even monthly basis.

Capital expenditure on the other hand refers to expenditure on capital projects.

Government purchases of goods and services for current use.

Purchases of goods intended to create future benefits e.g. infrastructure, education and research and development.

Transfers that do not involve purchase of any good or service, eg. unemployment benefits, scholarships, social welfare support, interest on public debt, etc.

State government and its MDAs