Question

What is the primary objective of Capital Receipts in a State Government's budget?

• A. To cover day-to-day operational expenses and salaries.
• B. To fund long-term investments and repay liabilities.
• C. To finance recurring public services like healthcare and education.
• D. To manage short-term cash flow fluctuations and meet immediate needs.

Answer 1

Answer:

B. To fund long-term investments and repay liabilities.

• Capital receipts are used to finance capital expenditures, such as building infrastructure and repaying outstanding loans.