Economics • Indian EconomyMedium
In the context of Indian public finance, what does 'Capital Budget' comprise?
A. Capital receipts and capital disbursements, including government investments, acquisition of assets, and repayment of loans✓ Correct Answer
B. Day-to-day operational expenditures and tax revenues collected by ministries
C. Grants given to state governments for meeting revenue deficit shortfalls
D. Subsidies disbursed for petroleum, fertilizers, and food grains
💡 Solution & Explanation
The Capital Budget encompasses capital receipts such as borrowings and recovery of loans alongside capital disbursements directed toward asset creation, infrastructure investments, and loan repayments. Day-to-day operational expenditures and tax collections form part of the Revenue Budget instead. Sound fiscal management requires maintaining a sustainable balance between revenue deficits and productive capital expenditures.
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