Question : Which of the following is a capital expenditure?
Option 1: Expenditure on administrative services.
Option 2: Grants given to state government.
Option 3: Payment of salaries to the staff of government department.
Option 4: Defence equipment purchased from Russia
Answer (1)
25th Jan, 2024
Correct Answer:
Defence equipment purchased from Russia
Solution :
Defence equipment purchased from Russia is a capital expenditure as it increases assets of the government. Rest of the three are revenue expenditure of government.
Hence Option D is correct
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