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.
Correct Answer: Repayment of loan.
Solution : Repayment of loan is a capital expenditure as it reduces liabilities of the government. Rest of the three are revenue expenditure of government. Hence Option C is correct
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.
Option 1: Expenditure on administrative services.
Option 3: Payment of salaries to the staff of government department.
Option 4: Defence equipment purchased from Russia
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.
Question : Which of the following is a revenue expenditure?
Option 2: Defence capital equipment purchased from Germany
Option 3: Expenditure on construction of school building
Option 4: Amount borrowed from USA repaired
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
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