Among the following expenditures one expenditure comes under capital expenditure. Choose the correct option.
Answer & explanation
Correct answer: option 4
The correct answer is option (4) : Expenditure on construction of Delhi-Mumbai corridor
Explanation :
Capital expenditure involves investments in assets that provide long-term benefits. Constructing infrastructure like the Delhi-Mumbai corridor falls under capital expenditure. The other options involve current or revenue expenditures.
Explanation:
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Expenditure on Vaccination being provided free of cost to prevent Covid-19: This is categorized as revenue expenditure as it is aimed at current consumption or providing services in the current period.
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Expenditure on Ujjwala Scheme: This is typically a revenue expenditure aimed at providing immediate benefits or subsidies.
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Free ration to poor people by the Government during Covid-19: This is also a revenue expenditure aimed at providing immediate relief and support.
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Expenditure on construction of Delhi-Mumbai corridor: This is a capital expenditure because it involves investment in long-term assets that will benefit the economy over an extended period. Capital expenditures are typically for creating infrastructure, acquiring fixed assets, or investing in projects that provide long-term benefits to the economy.