Which of the following is/are included in the capital budget of the Government of India? [UPSC Prelims 2016]

Which of the following is/are included in the capital budget of the Government of India?

1. Expenditure on acquisitions 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

Ans. D
Explanation:
Capital receipts and expenditures of Govt of India budget. Even borrowings and loans given come under capital expenditure and receipts.
Why the question Came:
Classic question from Budgeting/Economic survey. Well discussed in every Economic Survey!
Sources:
The Economic Survey 2016-17, Budget 2015-16
http://www.indiabudget.nic.in/budget2015-2016/ub2015-16/rec/cr.pdf

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