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One of the other two components of government expenditure in the budget are
  • a)
    Budget receipts
  • b)
    Capital Expenditure
  • c)
    Revenue Expenditure
  • d)
    Expenditure receipts
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
One of the other two components of government expenditure in the budge...
Capital expenditure or capital expense is the money a company spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land.
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One of the other two components of government expenditure in the budge...
The budget has two broad components: Revenue budget and Capital budget. The revenue budget includes revenue expenditure and revenue receipts. The capital budget includes capital expenditure and capital receipts.
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One of the other two components of government expenditure in the budge...
The question must contain one of the options as both b.) and c.) and that would have been the answer.
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Read the news report given below and answer the question that follow:The Finance Minister Nirmala Sitharaman has proposed a sharp 34.5 per cent hike in capital expenditure to ₹5.54 lakh crore in the financial year 2022 in order to push growth. The massive increase comes at a time when the country is looking to recover from the Covid pandemic, as rising government spending is key to bringing the economy back on track.The government will also provide an additional ₹2 lakh crore to states for capital expenditure over and above its own commitment. “We will also work out a specific mechanism to nudge states to spend more of their Budget on creation of infrastructure,” Ms. Sitharaman said.The finance minister said that the government will launch a national asset monetisation pipeline which includes the sale of oil and gas pipelines, power transmission lines and operation of toll roads under the National Highway Authority of India.This year’s budget, according to the government, rests on six pillars: health and well-being, physical and financial capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and research and development, and “minimum government, maximum governance,” the finance minister had asserted. And capital expenditure is an important component that drives the growth.Q. ______________________ is an important component that drives the growth.

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One of the other two components of government expenditure in the budget area)Budget receiptsb)Capital Expenditurec)Revenue Expenditured)Expenditure receiptsCorrect answer is option 'B'. Can you explain this answer?
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