Which of the following statements about the Indian
budget is incorrect?
ANon-tax receipts of the government mainly consist of interest and dividends on investment in addition to fees and other receipts for services rendered by the government.Correct AnswerIncorrect Answer
BInterest payments on debt is part of the revenue expenditure.Correct AnswerIncorrect Answer
CAll grants to the state governments and union territories except for use of creation of capital assets are treated as revenue expenditure.Correct AnswerIncorrect Answer
DAll grants to the state governments and union territories except for use of creation of capital assets are treated as revenue expenditure.Correct AnswerIncorrect Answer
EAll grants to the state governments and union territories except for use of creation of capital assets are treated as revenue expenditure.Correct AnswerIncorrect Answer
Solution
All grants to the states or union territories are treated as revenue expenditure even though a portion of these may be used for creation of capital assets.