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Question

__________________ expenditures are those expenditures of the government which lead to creation of physical or financial assets or reduction of liabilities.

A
Plan
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B
Revenue
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C
Capital
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D
Non-plan
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Solution

The correct option is C Capital
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.

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