The National Budget consists of revenue and expenditure. Briefly explain the difference between revenue and expenditure and, excluding education, give an example of each.

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**Step 1. Define Revenue and Expenditure**

- **Revenue:** This refers to the income earned by the government. It includes all funds collected from various sources that help finance government operations. Mathematically, if we let $$ R $$ denote the total revenue, then  
  $$
  R = \text{Taxes} + \text{Non-tax revenue}
  $$
  Revenue sources include income tax, corporate tax, customs duties, and excise duties.

- **Expenditure:** This refers to the money the government spends to provide goods, services, and to carry out development projects. If we denote total expenditure by $$ E $$, then  
  $$
  E = \text{Development spending} + \text{Interest payments} + \text{Subsidies} + \text{Other expenses}
  $$

**Step 2. Provide Examples (Excluding Education)**

- **Example of Revenue (excluding education):**  
  A primary source of revenue is **income tax**. When individuals earn income, a portion is paid to the government as income tax, which is used to fund various public services and infrastructure.

- **Example of Expenditure (excluding education):**  
  A typical example of expenditure is **defense spending**. The government allocates funds for the maintenance and development of the armed forces, which is essential for national security.

Thus, while revenue represents the inflow of resources (like income tax), expenditure represents the outflow of resources (such as defense spending).
**Revenue** is the money the government earns, like income tax from citizens. **Expenditure** is the money the government spends, such as on defense.

The National Budget consists of revenue and expenditure. Briefly explain the difference between revenue and expenditure and, excluding education, give an example of each.

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