Capital Budget consists of capital receipts and payments. It also incorporates transactions in the Public Account.
Capital receipts are loans bought by the government from the common people (which are called market loans), borrowings by the government from the Reserve Bank of India and other parties through sale of treasury bills, loans received from foreign bodies and governments, and recoveries of loans granted by the Central government to state and Union Territory governments and other parties.
Also Read: Union Budget 2018: Know all about Union Budget- FAQs
Capital payments consist of capital expenditure on acquisition of assets like land, buildings, machinery, and equipment, as also investments in shares, loans, and advances granted by the Central government to state and Union Territory governments, government companies, corporations, and other parties.
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