Q. 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.
- 1 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
Answer: (d) 1, 2 and 3
Capital Budget:
- A capital Budget is the set of payments that create long-term assets in the economy and the receipts that are raised by the government with or without liabilities.
- Capital receipts and expenditures are included in the capital budget. It also includes transactions from the Public Account.
- Capital receipts are loans raised from the public (also known as market loans), borrowings from the Reserve Bank and other parties through the sale of Treasury bills, loans obtained from foreign bodies and authorities, and recoveries of loans granted by the Central government to state and Union Territory governments and other parties are all examples of capital receipts.
- Capital expenditures include payments on assets like land, buildings, machinery, and equipment, as well as investments in shares, loans, and advances made by the federal government to state and union territory governments, government businesses, corporations, and other parties.
