|Expenditure on which of the following is eligible to be a part of capital expenditure of the Government of India?|
|1. Land acquisition.|
|2. Loans by the Central Government to the State Governments and UTs.|
|3. Advances and loans made to the PSUs.|
|Select the correct answer using the codes given below.|
A) 1 and 3
B) 2 and 3
C) 1 and 2
D) All of these
Correct Answer: B
Solution :[d] This includes expenditure on the acquisition of land, building, machinery, equipment, investment in shares and loans and advances by the Central Government to State and Union Territory Governments, PSUs and other parties. Capital expenditure is also categorised as plan and non-plan in the budget documents. Plan capital expenditure, like its revenue counterpart, relates to central plan and central assistance for state and union territory plans. Non-plan capital expenditure covers various general, social and economic services provided by the government.
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