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Question No. 234Interactive Test Mode
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Q234. 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 governments 3. Loans and advances granted to the States and Union Territories Select the correct answer using the code given below.

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 governments
  3. Loans and advances granted to the States and Union Territories Select the correct answer using the code given below.
Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

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Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2016 • Indian Economy

Correct Answer: Option (D) — 1, 2 and 3

Concept & Option Breakdown

Standard Reference Verified

The Capital Budget comprises Capital Receipts and Capital Expenditures:

  1. Expenditure on acquiring physical assets (roads, buildings, machinery) creates assets for the nation and forms part of Capital Expenditure.
  2. Loans received from foreign governments and multilateral institutions create debt liabilities and are categorized as Capital Receipts.
  3. Loans and advances granted by the Centre to State Governments and Union Territories create financial assets (claims) and are part of Capital Expenditure. Thus, all three are part of the Capital Budget.
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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2016 (Q234)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (D) — 1, 2 and 3

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Frequently Asked Questions — UPSC Prelims 2016 Q234

What is the official answer for UPSC Prelims 2016 GS Paper I Question 234 (Indian Economy)?

The official UPSC answer key for this 2016 Indian Economy (Indian Economic Planning & Growth) question is Option (D): "1, 2 and 3". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2016 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Indian Economic Planning & Growth". You can explore all repeated questions from Indian Economic Planning & Growth in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Indian Economic Planning & Growth UPSC Prelims question using option elimination?

To solve Indian Economic Planning & Growth questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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