Question : Expenditure of the government on health facilities, education and fixed-asset acquisition is termed as _________.
Option 1: revenue expenditure
Option 2: plan expenditure
Option 3: non-plan revenue expenditure
Option 4: capital expenditure
Correct Answer: capital expenditure
Solution : The correct answer is capital expenditure.
Capital expenditures are long-term investments, like assets purchased with a useful life of a year or more than one year. The expenditure of the government on health facilities, education, and fixed-asset acquisitions is termed capital expenditure. The other examples of capital expenditure are property, furniture, equipment, machinery, buildings, etc.
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