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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


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 10th Jan, 2024

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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