Which of the following is/are included in the capital budget of the Government of India? 1. Expenditure on acquisition of assets like roads, buildings, machinery, etc. 2. Loans received from foreign governments 3. Loan and advances granted to the States and Union Territories Select the correct answer using the codes given below:

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CollectorBabu · Accepted Answer

Correct Answer: 1, 2 and 3. ● Capital Budget consists of capital receipts and payments. I.Capital Receipts (lump sum receipts with repayment liabilities) a) Receipts from disinvestment of PSUs b) Receipts from the sale of assets by the government, e.g., sale of coal-blocks, auction of spectrum, Govt. lands & buildings, etc. c) Recovery of past loans (principal amount) d) Borrowings (domestic as well as foreign) of the government from banks, financial institutions, etc. (This part comprises of huge repayment liabilities) II. Capital Expenditure (lump sum expenditure; mostly for capital asset creation) a) Repayment of loans b) Loans given to states & UTs c) Expenditure on infrastructure

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