Macro

Government Budget

Easy

Identify the capital expenditure of the government from the following:

Interest payments on debt incurred by the government.

Expenditure on salaries and pensions.

Expenditure on defence services.

Loans and advances by the central government to state governments.

✅ Correct Option: 4

Capital expenditure either creates assets or reduces liabilities of the government. Loans and advances given by the centre to states create a financial asset (a claim to be repaid), so they are capital expenditure. Interest payments, salaries, pensions and routine defence spending neither create assets nor reduce liabilities, so they are revenue expenditure.

2025: 26 May Shift 2

Which of the following represents the borrowing requirements of the government for the purposes other than interest payments?

2023: 11 June Shift 3

Which deficit includes only such transactions that affect the current income and expenditure of the government ?

2023: 20 June Shift 1

Which of the following is not true about Public goods?

2025: 27 May Shift 2

To obtain an estimate of borrowing on account of current expenditures exceeding revenues, we need to calculate what has been called the primary deficit. Gross primary deficit...

2022: 10 Aug Shift 2

'Rs. 48,000 cr is allotted for PM Awas Yojana in this years budget'.

Identify the government objective fulfilled from the statement above.

2023: 29 May Shift 2

From the following data, Calculate Primary Deficit.

	Rs (crore)
Revenue expenditure	22,250
Capital expenditure	28,000
Revenue receipts	17,750
Capital receipts (net of borrowing)	20,000
Interest payment	5,000
Borrowings	12,500

Identify the capital expenditure of the government from the following:

Solution

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