Which of the following is/are included in the capital budget of the Government of India?

1. Expenditure on acquisition of assets like roads, buildings, machinery, etc.
2. Loans received from foreign governments
3. Loans and advances granted to the States and Union Territories

Select the correct answer using the code given below.

The capital budget consists of capital expenditures by the central government on:

• Acquisition of fixed assets like roads, infrastructure, government buildings, machinery etc.
• Investments made to augment the productive capacity of the economy.

It does not include the following:

• Loans received or borrowings from internal or external sources like foreign governments. This is part of the overall annual borrowings.
• Loans and Advances given out to State governments or Union Territories. This comes under detailed Demands for Grants.

In summary, the capital budget only captures expenses related to new capital assets creation and investments. Borrowings or lending do not feature in it.