Question : Loans offered by the central government to the state government are to be treated as
Option 1: Capital expenditure by central government
Option 2: Capital receipts by by central government
Option 3: Capital expenditure by state government
Option 4: Revenue receipts by state government
Correct Answer: Capital expenditure by central government
Solution : The correct answer is (a) Capital expenditure by the central government.
When the central government provides loans to the state government, it is considered as a capital expenditure because it represents an outflow of funds from the central government's budget. The central government is allocating capital resources to the state government for their various capital expenditure requirements.
The state government, on the other hand, treats these loans as capital receipts because it is receiving capital funds from the central government. For the state government, these loans are a source of capital inflow.
Question : The government's borrowings from the public are known as ____________.
Option 1: Revenue receipts
Option 2: Capital receipts
Option 3: Revenue expenditure
Option 4: Capital expenditure
Question : The revenue deficit is calculated as ____________ minus revenue receipts.
Option 1: Total expenditure
Option 3: Capital expenditure
Option 4: Fiscal deficit
Question : Non-tax revenue is part of ______.
Option 1: Revenue expenditure
Option 2: Revenue receipts
Option 4: Capital receipts
Question : Salaries, pension, interest, etc are the examples of _____________.
Option 1: Capital receipts
Option 2: Capital expenditure
Option 3: Revenue receipts
Option 4: Revenue expenditure.
Question : The dividends received by the government from Public Sector Undertakings (PSUs) are ________.
Option 1: capital expenditure
Option 2: capital receipts
Option 3: non-tax revenue receipts
Option 4: tax revenue receipts
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