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The actual liabilities of the Union government include which of the following
1. Borrowings by PSUs
2. Loans taken for the recapitalisation of banks
3. Capital expenditures of various Ministries.
1. Borrowings by PSUs
2. Loans taken for the recapitalisation of banks
3. Capital expenditures of various Ministries.
Select the correct answer code:
- a)1 and 2 only
- b)1 and 3 only
- c)2 and 3 only
- d)All of the above
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
The actual liabilities of the Union government include which of the fo...
- In addition to the borrowings by PSUs, the actual liabilities of the government would include loans taken for the recapitalisation of banks.
- Capital expenditure creates assets for the government and causes reduction in liabilities for the government.
Most Upvoted Answer
The actual liabilities of the Union government include which of the fo...
Liabilities of the Union government:
Borrowings by PSUs:
- Public Sector Undertakings (PSUs) are government-owned companies that often require borrowing to finance their operations.
- These borrowings are considered liabilities of the Union government as the government ultimately guarantees or is responsible for repaying these debts.
Loans taken for the recapitalisation of banks:
- The government may provide loans to banks for recapitalization purposes, especially during financial crises or to strengthen the banking sector.
- These loans are considered liabilities as they represent financial commitments that the government must fulfill.
Capital expenditures of various Ministries:
- Capital expenditures refer to investments in assets such as infrastructure, equipment, and buildings by various Ministries of the Union government.
- These expenditures are considered liabilities as they represent future financial obligations that the government must meet.
Therefore, the actual liabilities of the Union government include borrowings by PSUs and loans taken for the recapitalization of banks. These financial commitments reflect the government's responsibility to manage and repay debts incurred on behalf of these entities.
Borrowings by PSUs:
- Public Sector Undertakings (PSUs) are government-owned companies that often require borrowing to finance their operations.
- These borrowings are considered liabilities of the Union government as the government ultimately guarantees or is responsible for repaying these debts.
Loans taken for the recapitalisation of banks:
- The government may provide loans to banks for recapitalization purposes, especially during financial crises or to strengthen the banking sector.
- These loans are considered liabilities as they represent financial commitments that the government must fulfill.
Capital expenditures of various Ministries:
- Capital expenditures refer to investments in assets such as infrastructure, equipment, and buildings by various Ministries of the Union government.
- These expenditures are considered liabilities as they represent future financial obligations that the government must meet.
Therefore, the actual liabilities of the Union government include borrowings by PSUs and loans taken for the recapitalization of banks. These financial commitments reflect the government's responsibility to manage and repay debts incurred on behalf of these entities.
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The actual liabilities of the Union government include which of the following1.Borrowings by PSUs2.Loans taken for the recapitalisation of banks3.Capital expenditures of various Ministries.Select the correct answer code:a)1 and 2 onlyb)1 and 3 onlyc)2 and 3 onlyd)All of the aboveCorrect answer is option 'A'. Can you explain this answer?
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