State with reasons whether you agree or disagree with the following statements.
1. Capital budget consists of revenue receipts and revenue expenditure.
Answer:
1. No, the above statement is not correct. A capital budget is mainly concerned with the capital items in the government budget, such as loans, borrowings, land, buildings etc., It consists of capital receipts and capital expenditure. On the other hand, revenue receipts and revenue expenditure form a part of the revenue budget.
