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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.

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. Correct Answer 1, 2 and 3

The correct answer is 1, 2, and 3.

  • The capital budget refers to an account of assets and liabilities of the government that includes capital receipts and capital expenditure.
  • Capital expenditure components are,
    • Examples: Expenditure on the acquisition of land, building, machinery, equipment, creating assets such as roads and hospitals, repayment of government borrowings, loans, and advances by the central government to state and union territory governments, etc. Hence statement 1 and 3 is correct.
  • Capital receipts components are,
    • Examples: Loan borrowings, disinvestments, funds received from the issue of shares or debentures, etc. Hence statement 2 is correct.

Related Questions

The following sentences have been given in a jumbled manner. Un-jumble the sentences and answer the option which describes the order of sentences in a correct manner.  A. India's government is in talks with foreign lenders to provide as much as $14.5 billion in credit to millions of its small firms, two officials said, in a sign, the country's banking system may not be robust enough to do the job on its own B. India's micro, small and medium enterprise(MSME) ministry is discussing the proposal to pull in foreign banks with the country's ministry of finance, which will make a final call. C. The push for foreign loans comes on the heels of the Indian government's announcement earlier this month that it plans to borrow about 700 billion rupees by issuing overseas sovereign bonds. D. The government is in discussions with multiple foreign lenders, including Germany's state-owned development bank KfW Group, the World Bank and some Canadian institutions to extend lines of credit to small enterprises E. One official said that the government plans to source up to 1 trillion Indian rupees of loans from foreign institutions because Indian banks were not in a position to provide enough capital for the small business sector, which is seen as critical to job creation.
Directions : In each of the following questions a statement is given, followed by three conclusions. Give answer :

Statement : The Central Government has directed the State Governments to reduce government expenditure in view of the serious resource crunch and it may not be able to sanction any additional grant to the states for the next six months.

Assumptions :
I. The State Governments are totally dependent on Central Government for its expenditures.
II. The Central Government has reviewed the expenditure account of the State Government.
III. The State Governments will abide by the directive.
Consider the following statements.
1. In case of standard assets, provision for NPA must be 25% for all types of standard assets.
2. In case of sub-standard assets, provision for NPA must be 10% for all types of standard assets.
3. In case of doubtful assets, 100% provision is required for unsecured and secured advances.
4. In case of loss assets, 10% of unsecured and 100% of secured advance must be kept as provision for NPAs.
Which of the statement(s) given above is/are correct?
The pie chart given below shows the expenditure of a family on six different articles A, B, C, D, E and F in a month. Total expenditure on all these six articles is Rs. 42000. Expenditure on a particular article is shown as a percent of total expenditure on all these six articles. Which of the following statement(s) is/are correct? I. Expenditure on article C is Rs. 5560 more than the expenditure on article A. Il. Ratio of expenditure on article A to the expenditure on article D is 5: 4 respectively.
Consider the following statements 1. Territory of India includes Territories of the states and Union territories only. 2. The names of states and union territories and their territorial extent are mentioned in the first schedule of the Constitution. 3. ‘Union of India’ is a wider expression than the ‘Territory of India’ Which of the above statements is/are correct?
Consider the following pairings of Non-Performing Assets (NPA) classification in India with their descriptions: 1. Substandard assets : Assets which have remained NPAs for a period less than or equal to 12 months. 2. Doubtful assets : Assets which have remained in the substandard category for a period of 12 months. 3. Loss assets : Assets which are considered uncollectible and of such little value that their continuance as a bankable asset is not warranted, although there may be some salvage or recovery value. Which out of the above pairings are correct?
What is the difference between "vote-on-account" and "interim budget"? 1. The provision of a "vote-on-account" is used by a regular Government, while an "interim budget" is a provision used by a caretaker Government. 2. A "vote-on-account" only deals with the expenditure in the Government's budget, while an "interim budget" includes both expenditure and receipts. Which of the statements given above is/are correct?
Which of the following are regarded as capital receipts of capital budget? 1. Market borrowings 2. Borrowing by government from RBI 3. Loans from foreign governments 4. Small savings 5. Provident funds Select the correct answer using the codes given below:
What are the objectives and functions of state financial corporations? 1. The main function is to provide non-term loans for the acquisition of land, building, plant, machinery and other movable assets. 2. To finance expansion, modernization and up-gradation of technology in the existing units. 3. To assist for the promotion of industry by the rural and urban artisans. 4. Providing seed capital assistance under the scheme of the Industrial Development Bank of India. Select the correct answer using the code given below :
Which of the following are the reforms introduced in Budget 2017-2018? 1. Presentation of Budget advanced to 1st February to enable the Ministries to operationalize all activities from the commencement of the financial year 2. Merger of Railway Budget with General Budget to bring Railways to the centre stage of Government’s Fiscal Policy  3. Removal of plan and non-plan classification of expenditure to facilitate a holistic view of allocations for Sectors and Ministries Select the correct answer using the code given below: