What is capital expenditure? – InterviewSolution

InterviewSolution

1.	What is capital expenditure?
Answer» Capital expenditure is expenditures on transactions which have long term or continuous impacts on government funds. This account includes loans given by the government to other governments, repayment of previously taken loans, capital expenses on social and economic services, as well as capital expenses on defence, etc.

Discussion

No Comment Found

Related InterviewSolutions

What is federal finance?
Explain federal finance.
What is fiscal deficit?
Explain briefly fiscal deficit.
State two non-plan expenditure of the central government.
State the functions of panchayats that lead to their expenditures.
What do you mean by developmental and non-developmental expenditures?
The credit side of the budget records ________(A) Current income(B) Revenue expenditure(C) Capital income(D) Both (A) and (C)
Since ________ the expenditure of central government is classified into plan and non-plan expenditures.(A) 1991(B) 2001(C) 2016(D) 2013
Which of the following is a demerit of deficit budget?(A) It shows that the governments do not have control on expenditures.(B) Governments borrow more and increase debts.(C) People are made to pay more taxes to enhance government incomes.(D) Both (A) and (B)