Question : Which of the following is a capital expenditure?
Option 1: Expenditure on subsidies
Option 2: Grants given to state government.
Option 3: Repayment of loan.
Option 4: Expenditure on collection of taxes.
Answer (1)
24th Jan, 2024
Correct Answer:
Repayment of loan.
Solution :
Repayment of loan is a capital expenditure as it reduces liabilities of the government. Rest of the three are revenue expenditure of government.
Hence Option C is correct
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