Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Borrowings and other liabilities are part of which section of government budget?

Options:

Revenue Receipts

Revenue Expenditure

Capital Receipts

Capital Expenditure

Correct Answer:

Capital Receipts

Explanation:

The correct answer is Capital Receipts.

Borrowings and other liabilities are part of the Capital Receipts section of the government budget.

Borrowings and other liabilities are sources of financing for the government's capital expenditures.

Capital expenditures are investments made by the government in infrastructure, such as roads, bridges, and buildings, as well as in other assets that will generate future benefits.

Revenue Receipts, on the other hand, are the government's regular sources of income, such as taxes and fees.

Revenue Expenditure is the government's spending on current operations, such as salaries and wages, goods and services, and subsidies.