Capital Budget Components

The capital budget of India includes all three components. Statement 1 is correct: expenditure on acquisition of assets (capital expenditure) is a core component of the capital budget. Statement 2 is correct: loans received from foreign governments are part of the borrowing/receipts side of the capital budget. Statement 3 is correct: loans and advances granted to states and union territories are also included in the capital budget as they represent capital receipts and disbursements. The capital budget encompasses all transactions that affect the net worth of the government, including asset creation, borrowing, and lending activities. > Capital Budget = Assets + Borrowing + Lending to Sub-national Units. Answer: d.