Question : Which of the following is a capital expenditure?
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.
Correct Answer: Expenditure on construction of Metro.
Solution : Expenditure on construction of a Metro 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.
Option 1: Expenditure on subsidies
Option 2: Grants given to state government.
Option 3: Repayment of loan.
Option 4: Expenditure on collection of taxes.
Question : Which of the following is a revenue expenditure?
Option 1: Loans given to union territories
Option 2: Expenditure on construction of metros
Option 3: 10% shares purchase by the government in a private company
Option 4: Salary paid Army officers.
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.
Option 1: Expenditure on administrative services.
Option 3: Payment of salaries to the staff of government department.
Option 4: Defence equipment purchased from Russia
Question : Loans offered by the central government to the state government are to be treated as
Option 1: Capital expenditure by central government
Option 2: Capital receipts by by central government
Option 3: Capital expenditure by state government
Option 4: Revenue receipts by state government
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