Question : Which of the following is not a capital expenditure for the central government?
Option 1: Loan to state government
Option 2: Improvement of fixed assets
Option 3: Salaries and old-age pensions
Option 4: Construction of roads and bridges
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Correct Answer: Salaries and old-age pensions
Solution : The correct option is salaries and old-age pensions .
Salaries and old-age pensions are typically considered revenue expenditures rather than capital expenditures for the central government. Capital expenditures generally involve the acquisition or improvement of long-term assets such as buildings, infrastructure, equipment, or investments that have a lasting and tangible benefit. These investments contribute to the expansion, enhancement, or maintenance of the government's assets or infrastructure.
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