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      Question

      Which of the following components is part of capital

      expenditure in the Union Budget?
      A Pension payments Correct Answer Incorrect Answer
      B Interest payments Correct Answer Incorrect Answer
      C Grants to states for creation of assets Correct Answer Incorrect Answer
      D Food and fertilizer subsidies Correct Answer Incorrect Answer
      E Revenue deficit grants Correct Answer Incorrect Answer

      Solution

      Capex includes asset-creating expenditures, including capital transfers like grants to states specifically for building assets.

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