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Question
What is capital expenditure?
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Solution 1
Capital expenditure is the government expenditure which reduces the liability of the government and also creates assets for the government such as domestic or multinational corporation shares purchased by the government.
Solution 2
It is an expenditure incurred during an accounting period, the benefits of which will be available for more than one accounting period. It includes any expenditure resulting in the acquisition of any fixed asset or contributes to the revenue earning capacity of the business. It is non-recurring in nature.
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| S. No. | Content | Rs (in crores) |
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| 2. | Capital Receipts | 40 |
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| Column A | Column B |
| 1. Revenue Expenditure | (a) Does not cause any reduction in government liability |
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| 3. Revenue Receipts | (c) Which causes a reduction in assets of the government |
| 4. capital Receipts | (d) Causes reduction in government liability. |
