UPSC CSE Prelims
Question 13
Which of the following is/are included in the capital budget of the Government of India?
- Expenditure on acquisition of assets like roads, buildings, machinery, etc.
- Loans received from foreign governments
- Loans and advances granted to the States and Union Territories
Select the correct answer using the code given below.
View correct answer and explanation
Correct answer: D
Correct Option: D
Explanation: Capital budgets record capital receipts and capital expenditure: asset creation, government borrowing and loans disbursed are all represented.
Statement/Pair-wise Analysis:
Statement/Item 1: Correct - Acquiring roads, buildings and equipment is capital expenditure because it creates assets.
Statement/Item 2: Correct - Foreign-government loans are capital receipts, creating government liabilities.
Statement/Item 3: Correct - Government loans to states/UTs are capital expenditure, creating financial assets.
Option-wise Analysis:
A: Incorrect - omits correct statement/items 2, 3.
B: Incorrect - omits correct statement/item 1.
C: Incorrect - omits correct statement/item 2.
D: Correct - includes all and only the true statements/items.