New SIDBI Grade A New Batch Starts on Nov 18

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    Question

    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.

    A 1 only Correct Answer Incorrect Answer
    B 2 and 3 only Correct Answer Incorrect Answer
    C 1 and 3 only Correct Answer Incorrect Answer
    D 1, 2 and 3 Correct Answer Incorrect Answer
    E 2 only Correct Answer Incorrect Answer

    Solution

    The main items of capital budget are receipts and expenditure for capital (Financial) gains. It also includes loans raised by Government from public, Reserve Bank and other parties, and from foreign Governments and bodies. It also includes capital expenditure on acquisition of assets like land, buildings, machinery, equipment, etc and loans and advances granted by Central Government to State and Union Territory Governments, Government companies, Corporations and other parties.

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