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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.
 


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

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

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