Question : The government's capital expenditure is primarily directed towards ____________.
Option 1: Interest payments
Option 2: Subsidies
Option 3: Defense expenditure
Option 4: Salaries and wages
Correct Answer: Defense expenditure
Solution : The correct answer is (C) Defense expenditure.
Capital expenditure refers to government spending on long-term assets or investments that have a lasting impact on the economy. While the specific allocation of capital expenditure can vary depending on the country and its priorities, defense expenditure is a common area where governments allocate a significant portion of their capital budget.
Defense expenditure includes spending on defense-related infrastructure, equipment, research and development, personnel, and other defense-related activities. It is aimed at maintaining national security, protecting borders, and ensuring the defense capabilities of the country.
Question : The government's revenue expenditure includes ____________.
Option 2: Loans and advances
Option 3: Purchase of assets
Option 4: Grants to states
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 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 : Which of the following is an example of an autonomous expenditure?
Option 1: Interest payments on public debt
Option 2: Subsidies provided by the government
Option 3: Government purchases of goods and services
Option 4: Personal consumption expenditure
Question : Which of the following is a capital expenditure?
Option 1: Expenditure on subsidies
Option 2: Grants given to state government.
Option 3: Repayment of loan.
Option 4: Expenditure on collection of taxes.
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