Question

From the set of terms given in Column-I and Column-II, choose the correct pair:

Column-I	Column-II
(a) Non-tax Revenue	(ii) Free-rider
(b) Indirect Tax	(i) Goods and Services Tax
(c) Capital expenditure	(iii) Borrowings
(d) Private goods	(iv) Rivalrous in nature

• (a) -- (i)
• (b) -- (ii)
• (c) -- (iii)
• (d) -- (iv)

Hint:

Remember: Capital expenditure includes asset creation and liability reduction, such as loan repayments.

Answer 1

The Correct Option is C

Capital expenditure refers to the expenditure incurred by the government on creating assets or reducing liabilities. Borrowings are an example of such expenditure since repayment of borrowings reduces government liabilities. Thus, the correct pair is (c) -- (iii).