Which of the following is/are included in the capital budget of the Government of India?1.Expenditure on acquisition of assets like roads, buildings, machinery, etc.2.Loans received from foreign governments3.Loans and advances granted to the States and Union TerritoriesSelect the correct answer using the code given below

1. A

   1 only

   Acquisition of assets only. Capital expenditure on roads, buildings and machinery is in the capital budget, but foreign loans received and loans given to States/UTs are also capital-account items. 1 alone is incomplete.

2. B

   2 and 3 only

   2 and 3 only. Those are capital receipts and capital outgo, yet asset creation is the classic capital-expenditure head. Dropping 1 is not the key.

3. C

   1 and 3 only

   1 and 3 only. Foreign loans received are capital receipts in the Union budget. Omitting 2 is not the key.

4. D

   1, 2 and 3

   1, 2 and 3. The capital budget covers capital expenditure (asset creation), capital receipts (including loans from abroad) and capital disbursements such as loans and advances to States and Union Territories. That stored letter is the official key.

Summary. Official key is (d) 1, 2 and 3. Capital budget = capital receipts plus capital expenditure. Buying assets, taking foreign loans and lending to States/UTs all sit on that account, not on the revenue account. Honour the stored letter (d).