Question

Loans and advances given to State Governments, Union Territories and Public Sector Undertakings (PSUs) are classified as:

Options

• Capital Expenditure

• Revenue Expenditure

• Non-Developmental Revenue Expenditure

• Grants to state governments

Answer 1

Loans and advances to State Governments, Union Territories and Public Sector Undertakings (PSUs) create financial assets for the government. Therefore, they are classified as Capital Expenditure.