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Capital Expenditure #CapitalExpenditure

Expenditure that create permanent assets and yield periodical income, and loans given to state government and local bodies are called capital expenditure.
In short, they are:
 Loan disbursals by the government.
 Loan repayments by the government of the borrowings made in the past.

 Plan expenditure of the government.

  Capital expenditure on defense by the government – defense is a non-plan expenditure which has capital as well as revenue expenditures element in its maintenance.
  General services – railways, postal department, water supply, education, rural extension, etc.

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