Consider the following statements about Union Government's Expenditure on revenue account and effective capital expenditure: 1. Effective capital expenditure as percentage of GDP has increased from 2020-21 to 2023-24. 2. Expenditure on revenue account as percentage of GDP has increased from 2020-21 to 2023-24. Which of the statements given above is/are <strong>CORRECT</strong>?

  1. A. 1 only
  2. B. 2 only
  3. C. Both 1 and 2
  4. D. Neither 1 nor 2

Correct Answer: A. 1 only

Explanation

The government has consistently increased its capital expenditure as a percentage of GDP to drive growth, while attempting to consolidate and reduce revenue expenditure relative to GDP.

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