Question

State whether the given statement is true or false:

‘Expenditure on Ujjwala Yojana launched by the Government is an example of capital expenditure.’

Answer 1

This statement is true.

Explanation:

Expenditure on Ujjwala Yojana is treated as capital expenditure because it leads to the creation of assets (LPG connections and related infrastructure) and improves the productive capacity and welfare of households. Capital expenditure either creates assets or reduces liabilities of the government.