UPSC Previous Year Question | Prelims GS | 2016

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. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3

Answer

Correct Answer

1, 2 and 3

Explanation

The capital budget covers capital receipts (like loans from foreign governments) and capital expenditure (like acquisition of assets and loans/advances to states and UTs), so all three items are correctly included.

Topics: budget, capital budget, indian economy, public finance