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Home Questions VM6Z3ZMM73
Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:
"Payment of salaries to the government employees is a capital payment."
Which of the following options stands to be true in regards to the above statement?
Options:
The statement is false
The statement is true
May be, the statement is true
Insufficient information
Correct Answer:
The statement is false
Explanation:
Payment of salaries to the government employees is not a capital payment. It falls in the category of revenue expenditure.

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