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Capital Budget

Karnataka Gov...

Question

Karnataka Government borrows 100 crores from the Central Government and repays 30 crores. This is added as a ___ in the budget.

A

Capital Receipt

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B

Revenue Receipt

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C

Capital Expenditure

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D

Partial loan recovery is not added in the budget

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Solution

The correct option is A
Capital Receipt

Borrowing and repayment of loans lead to change in assets of the Central Government. So this is added as a capital receipt in the budget.

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