Which of the following is/are included in the capital budget of the Go

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.

1 only
2 and 3 only
1 and 3 only
1, 2 and 3
This question was previously asked in
UPSC IAS – 2016
The correct answer is D) 1, 2 and 3. All three statements are included in the capital budget of the Government of India.
– The capital budget comprises capital receipts and capital expenditure.
– Capital receipts include loans received from foreign governments and borrowings from the public.
– Capital expenditure includes expenditure on the acquisition of assets like land, buildings, machinery, and equipment, as well as loans and advances granted by the central government to state governments, union territories, and public sector undertakings.
The budget of the Government of India is divided into Revenue Budget and Capital Budget. The Revenue Budget deals with revenue receipts and revenue expenditure, which do not affect the asset/liability status of the government. The Capital Budget deals with capital receipts and capital expenditure, which create assets or liabilities for the government.