Which of the following is/are included in the capital budget of the Government of India?
- Expenditure on acquisition of assets like roads, buildings, machinery, etc,
- Loans received from foreign governments
- Loans and advances granted to the States and Union Territories
Select the correct answer using the code given below.
[UPSC Civil Services Exam – 2016 Prelims]
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: (d)
Explanation:
- The capital budget refers to an account of assets and liabilities of the government that includes capital receipts and capital expenditures.
- Capital expenditure components are,
- Examples: Expenditure on the acquisition of land, building, machinery, equipment, creating assets such as roads and hospitals, repayment of government borrowings, loans, and advances by the central government to state and union territory governments, etc. Hence statement 1 and 3 is correct.
- Capital receipts components are,
- Examples: Loan borrowings, disinvestments, funds received from the issue of shares or debentures, etc. Hence statement 2 is correct.
