Question : Which of the following is a capital expenditure?
Option 1: Salary paid army officer.
Option 2: Grants given by central government to state government
Option 3: Interest paid on nation death
Option 4: Expenditure on construction of Metro.
Answer (1)
12th Jan, 2024
Correct Answer:
Expenditure on construction of Metro.
Solution :
Expenditure on construction of a Metro 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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