Which of the following is NOT a capital expenditure for the central government?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. Salaries and old age pensions.
Capital expenditure for the central government refers to spending on assets that create long-term benefits, such as infrastructure, machinery, and land acquisition. Examples include building roads, purchasing equipment, and funding public sector projects. Revenue expenditure, on the other hand, includes routine expenses like salaries, subsidies, and interest payments. Therefore, an item like payment of salaries to government employees is NOT a capital expenditure but a revenue expenditure, as it is a recurring cost without creating lasting assets.