Definition of Current Expense

How do we know a spending in matters of economy It involves the disbursement of a sum of money that is destined to settle a purchase or to pay a supplier, among others.

Meanwhile, a current expenditure it is the one who carries out a state with the mission of hiring personnel or, failing that, the one destined to purchase of inputs, goods and services that are essential to satisfactorily carry out the functions of administration that you can deploy. In other words, current expenditure is especially linked to production and consumption that makes the status of specific issues as we already mentioned, pay the personnel you hire or pay for those products and services you need.

By case and as such it has the clear mission of developing the corresponding administrative functions so that they are as efficient as possible. Because of course, without the corresponding human Resources and materials it would be impossible to carry them out and we would be facing a state that cannot solve the basic problems of its citizens.

As a consequence, these expenses will not have the creation of assets, they will not be recovered because they basically involve consumption expenses.

Then, the current expenses made by the states or administrations of government are used to specify what we could consider as ordinary activities associated with the production, the provision of services, the maintenance, activities that involve investigation and development of those areas that demand it and that, as we can imagine, always require special tools to be able to be carried out efficiently.

Among others, the most common and well-known current expenses incurred by an administration are: salaries, payments for social Security, food, tools and utensils, raw materials, elements that serve in production, banking services, rentals, among many others.