Q37.
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.
Answer
D
Explanation
The Capital Budget consists of capital receipts and capital expenditure. Capital receipts include: loans raised by the government from the public (market borrowings), borrowing from RBI, loans received from foreign governments and international organisations, and recoveries of loans granted. Capital Expenditure includes expenditure on the acquisition of land, building, machinery, equipment, investment in shares, and loans and advances by the central government to state and union territory governments, PSUs and other parties. All three items are part of the capital budget.