expenditure

Expenditure is the action of spending funds to acquire goods, services, or assets. In accounting and finance, it refers to outflows of resources, typically cash, that reduce an entity’s assets. Expenditure is commonly categorized by purpose or duration, such as operating (current expenses for day-to-day operations) and capital (spending on long-term assets or investments).

In personal finance, expenditure denotes household spending on items and services, including necessities such as food and housing, and discretionary purchases. Tracking expenditure supports budgeting, saving, and financial planning, and is often contrasted with income and saving.

In public finance, government expenditure comprises spending by national, regional, or local governments on goods, services, and public programs. It is typically classified as current expenditure (salaries, maintenance, subsidies) and capital expenditure (infrastructure, major acquisitions). Some accounting frameworks also include transfers and grants as expenditures within the budget, even though they do not always correspond to purchased goods or services in the period.

From an accounting perspective, expenditure is recorded when the outflow occurs or, under accrual accounting, as the asset or service is consumed (an expense). Budgeting and financial reporting distinguish expenditure from income, revenue, and cost, with cost often referring to the economic sacrifice associated with producing or delivering goods and services. Expenditure analysis informs policy decisions, corporate planning, and personal financial management.