Consider the following statements about the capital budget.1. The part of the Budget which deals with the receipts and expenditures of the capital by the government.2. This shows how the capital is managed and the areas where capital is spent.Which of these statements is/are incorrect?a)1 Onlyb)2 Onlyc)Both of themd)None of themCorrect answer is option 'D'. Can you explain this answer?

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Consider the following statements about the capital budget.

1. The part of the Budget which deals with the receipts and expenditures of the capital by the government.

2. This shows how the capital is managed and the areas where capital is spent.

Which of these statements is/are incorrect?

a)
1 Only
b)
2 Only
c)
Both of them
d)
None of them

Correct answer is option 'D'. Can you explain this answer?

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Most Upvoted Answer

Consider the following statements about the capital budget.1. The part...

The correct option is:

None of them

Both statements are correct.

The Capital Budget is a part of the overall government budget that deals with the receipts and expenditures of the capital by the government. It shows how the capital is managed and the areas where the capital is spent. The capital expenditure is incurred on the creation of assets like roads, buildings, machinery, and equipment that have a long-term life and can generate economic benefits over an extended period. The Capital Budget is an essential tool for the government to promote economic growth and development by investing in infrastructure and other development projects.

Answered by Notes Wala · View profile

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Consider the following statements about the capital budget.1. The part...

Statement 1: The part of the Budget which deals with the receipts and expenditures of the capital by the government.

Statement 2: This shows how the capital is managed and the areas where capital is spent.

Correct Answer: d) None of them

Explanation:
Both statements are correct and accurately describe the capital budget. Let's analyze each statement in detail:

Statement 1: The part of the Budget which deals with the receipts and expenditures of the capital by the government.
The capital budget is a part of the overall government budget and focuses on the allocation of funds for long-term investments and expenditures. It includes capital receipts (such as loans, disinvestments, and borrowings) and capital expenditures (such as infrastructure development, purchase of assets, and investments in public projects). The capital budget is separate from the revenue budget, which deals with day-to-day operational expenses of the government.

Statement 2: This shows how the capital is managed and the areas where capital is spent.
Statement 2 correctly highlights the purpose of the capital budget. It helps in managing and allocating capital for different sectors and projects. The capital budget provides a comprehensive overview of the areas where the government plans to spend funds on long-term investments. It helps in prioritizing projects, allocating resources, and ensuring efficient utilization of capital.

Since both statements accurately describe the capital budget and its purpose, the correct answer is option 'd' - None of them.

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Consider the following statements about the capital budget.1. The part of the Budget which deals with the receipts and expenditures of the capital by the government.2. This shows how the capital is managed and the areas where capital is spent.Which of these statements is/are incorrect?a)1 Onlyb)2 Onlyc)Both of themd)None of themCorrect answer is option 'D'. Can you explain this answer?

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