Question

Capital expenditure is majorly of developmental nature.

• A. True
• B. False

Answer 1

The correct option is A True

Capital expenditure are all those expenditure of the government that either creates an asset for the government or reduce the liability of the government. For example - Expenditure on land and building, purchase of shares etc. Therefore, these expenditure are usually development as it contributes to the social and economic welfare of the country.