Question : Which of the following is a capital expenditure?
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.
Answer (1)
3rd Jan, 2024
Correct Answer:
Purchase of Metro coaches from Japan.
Solution :
Purchase of Metro coaches from Japan is a capital expenditure as it increases assets of the government. Rest of the three are revenue expenditure of government.
Hence Option A is correct
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