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Question : Which of the following is a capital expenditure?
 

Option 1: Expenditure on administrative services.
 

Option 2: Grants given to state government.
 

Option 3: Payment of salaries to the staff of government department.
 

Option 4: Defence equipment purchased from Russia
 


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Defence equipment purchased from Russia
 


Solution : Defence equipment purchased from Russia is a capital expenditure as it increases assets of the government. Rest of the three are revenue expenditure of government.
Hence Option D is correct

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