Question : Which of the following is not a component of the expenditure of the Government?
Option 1: Expenditure on the acquisition of machinery
Option 2: Expenditure on the acquisition of land
Option 3: Expenditure on the acquisition of the building
Option 4: Interest payments
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Correct Answer: Interest payments
Solution : The correct option is Interest payments .
Interest payments are often not part of the government's capital budget. Rather than being a capital expense, interest payments are a component of revenue expenditure.
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