India posted a 9.2% GDP growth, the highest among all economies. The FM stated that ‘Sabka Prayaas’ will continue with strong growth. Budget 2022 has provided a sharp increase in public investment and capital expenditure provision. The strategic transfer of ownership of Air India has been completed. A new provision is introduced to allow taxpayers to update the past return and include omitted income by additional tax payment. The updated return can be filed within two years from the end of the relevant assessment year. Corporate surcharge to be reduced from 12% to 7%. An important amendment to the Central Goods and Services Tax Act is in Sections 16, 34, 37, 39, and 52. The last date to make amendments, corrections, upload missed sales invoices or notes, or claim any missed Input Tax Credit or ITC of one financial year is no longer the due date to file the September return of the following year, but it is the 30th November of the following year. A 6.4% fiscal deficit has been projected for India in FY23 and a revised fiscal deficit is estimated at 6.9% of GDP. Talking about education, two years of education regression for school-going children means we need to double-up efforts and spending to bridge education gaps. NEP had advocated a 6% of GDP to be directed towards education. While we remain far short, the announcement of tech-based platforms ‘One class, one TV channel’ program of PM eVIDYA for school children and the establishment of a digital university were the need of the hour. Also, RBI to introduce the digital rupee using blockchain technology starting 2022-23. For a country's overall development, its manufacturing sector plays a very important role as it absorbs the maximum labor of the country. To support sectors disproportionately affected by the pandemic, FM announces an extension of ECLGS till Mar-23. Given that nearly 95% of ECLGS borrowers are MSMEs, this measure will ensure the continued handholding of MSMEs and the services sector. The services sector, which accounts for more than 60% of India’s GDP, remains an important engine of economic growth, job creation, income generation, and livelihood support. Emergency Credit Line Guarantee Scheme has helped 130 lakh MSMEs mitigate the worst impact of the pandemic. An online bill system will also be launched to reduce the delay in payment which will be used by all the central ministries. 

As you can read in the passage that the budget provides a sharp increase in public investment and capital expenditure done by the government. According to you, which of the following is NOT a capital expenditure?

Increase in salaries if IAS, IPS, and other public servants

Capital expenditures are those expenses that either result in the creation of assets or a reduction in liability of the government. For example Payment of loan, Purchase of shares. The purchase of patents, vehicles, and the construction of warehouses result in the creation of assets thus, considered as capital expenditure. Whereas, salaries will be part of revenue expenditure as they are recurring in nature and neither create assets nor result in a reduction of liability.