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Capital Budget of the Government of India: What It Includes

1. Which of the following is/are included in the capital budget of the Government of India? 1. Expenditure on acquisition of assets like roads, buildings, machinery, etc. 2. Loans received from foreign governments 3. Loans and advances granted to the States and Union Territories. Select the correct answer using the code given below. [UPSC CSP 2016, GS Paper I]

 

Answer: (C) 1, 2 and 3

All three statements are true. Capital expenditure covers acquisition of assets like roads, buildings, and machinery. Capital receipts include loans India receives from foreign governments. Capital expenditure also covers loans and advances the Centre grants to States and Union Territories.

Related: IndEco0061 — Budget, Tax and Fiscal Policy

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