MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Revenue Items vs Capital Items

Why is repaym...

Question

Why is repayment of debt capital expenditure?

Open in App

Solution

Repayment of debt is a capital expenditure because it decreases the liability of the government.

Suggest Corrections

thumbs-up

1

Similar questions

Q. Very short answer type question:
Why is repayment of loan a capital expenditure?

Q. Short answer type questions:
Giving reasons, categorise the following into revenue expenditure and capital expenditure: (i) Subsidies; (ii) Grants given to State Governments; (iii) Repayment of loans; (iv) Construction of school buildings.

Q. Identify the following as revenue expenditure and capital expenditure. Give reasons.
(i) Salary paid to Army officers.
(ii) Purchase of Metro coaches from Japan.
(iii) Repayment of Loan taken from World Bank.
(iv) Grants given by central government to state Government.
(v) Loan given to Union Territories.
(vi) Interest paid on National Debt
(vii) Expenditure on construction of Metro. (viii) Pension paid to retired Government employees.
(ix) 10% shares purchased by the Government in a private company.

Q. If in a budget the government's revenue receipts and non-debt capital revenue are less than the government's total expenditure, it is called _____.

Find fiscal deficit, given the following information:

Items (Rs)

(i) Estimated total expenditure of the government 1,50,000

(ii) Revenue receipts 1,20,000

(iii) Non-debt capital receipts 10,000

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Evaluating Subscription

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Revenue Items vs Capital Items

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon