A
Clearing short-term foreign debt obligations of commercial public sector undertakings
B
Creating long-term physical or financial assets to generate a multiplier effect on the economy
C
Subsidizing daily consumer goods and food grains for urban households
D
Covering the regular administrative salary arrears of state government employees
Correct answer: (b) Creating long-term physical or financial assets to generate a multiplier effect on the economy
Explanation
Option B is correct as Capex is directed toward creating long-term physical or financial assets, creating a multiplier effect. Options A, C, and D refer to revenue expenditure or unrelated financial operations.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2024 · Q121 · UPPGS
Match List-I with List-II and choose the correct answer using the codes given below the lists: List-I List-II (State) (Rank according to expenditure on infrastructure 2019-23) A. Maharashtra 1. First B. Uttar Pradesh 2. Second C. Tamil Nadu 3. Third D. Karnataka 4. Fourth Codes: A B C D -
2020 · Q119 · UPPGS
Which of the following methods has/have been used to estimate poverty in India? 1. Head Count Ratio 2. Calorie intake 3. Household Consumption Expenditure 4. Per Capita Income Select the correct answer from the codes given below.