Consider the following statements:

  1. Loans given by Government of India to Bhutan is a Capital Expenditure for India
  2. Interest received by India on the loan mentioned in above statement is a Capital Receipt for India

Which of the above is / are correct statements?

Answer: [A] Only 1

Examples of Capital, Revenue Receipts and Expenditures
1. Government of India borrowed money from World Bank on low interestCapital Receipt
2. Government of India borrowed money from market by issuing bondsCapital Receipt
3. World Bank gives grant to Government of IndiaRevenue Receipt
4. Government of India gives grant to state under PMGSYRevenue Expenditure for Creation of Asset (GoCA)
5. Government of India gives loan to BhutanCapital Expenditure
6. Government of India gives grant to BhutanRevenue Expenditure
7. Government of India repaid the world bank loanCapital Expenditure
8. Government of India paid interest to world bankRevenue Expenditure
9. Government of India receives annual interest on amount lent to BhutanRevenue receipt
10. Government of Bhutan pays back India’s LoanCapital Receipt
11. Government of India’s expenditure on Food subsidyRevenue Expenditure
12. Government of India pays for import of oil from middle eastRevenue expenditure
13. Government of India imports ultra modern defense equipment.Capital Expenditure

This question is a part of GKToday's Integrated IAS General Studies Module