Question : Which of the following is a capital expenditure?
Option 1: Purchase of Metro coaches from Japan.
Option 2: Expenditure on collection of taxes
Option 3: Interest paid on national debt
Option 4: Pension paid to retired persons.
Correct Answer: Purchase of Metro coaches from Japan.
Solution : Purchase of Metro coaches from Japan is a capital expenditure as it increases assets of the government. Rest of the three are revenue expenditure of government. Hence Option A is correct
Option 1: Expenditure on subsidies
Option 2: Grants given to state government.
Option 3: Repayment of loan.
Option 4: Expenditure on collection of taxes.
Option 1: Salary paid army officer.
Option 2: Grants given by central government to state government
Option 3: Interest paid on nation death
Option 4: Expenditure on construction of Metro.
Question : Which of the following is a revenue expenditure?
Option 1: Expenditure on building a bridge
Option 2: Expenditure on construction of flyovers
Option 3: Repayment of loans
Option 4: Pension paid to retired government employee
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 : Fill in the blanks- Interest paid on national debt is a ________ expenditure.
Option 1: Revenue
Option 2: Capital
Option 3: Both A and B
Option 4: Neither A nor B.
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