Question : The government's capital expenditure is primarily directed towards ____________.
Option 1: Interest payments
Option 2: Subsidies
Option 3: Defense expenditure
Option 4: Salaries and wages
Correct Answer: Defense expenditure
Solution : The correct answer is (C) Defense expenditure.
Capital expenditure refers to government spending on long-term assets or investments that have a lasting impact on the economy. While the specific allocation of capital expenditure can vary depending on the country and its priorities, defense expenditure is a common area where governments allocate a significant portion of their capital budget.
Defense expenditure includes spending on defense-related infrastructure, equipment, research and development, personnel, and other defense-related activities. It is aimed at maintaining national security, protecting borders, and ensuring the defense capabilities of the country.
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