Question

“In the recent Budget the Government allocated funds for construction of new metro lines in smart cities to improve public transportation and reduce pollution.”
Identify the nature of government expenditure \& its objective.

Hint:

Expenditure on asset creation = Capital Expenditure; purpose = development + welfare.

Answer 1

The nature of government expenditure is Capital Expenditure, as it leads to the creation of long-term assets like metro infrastructure. The objective is to promote economic development by improving transport facilities and reducing pollution in urban areas.