What is included in the Capital Account of the Government? 

Correct option is B

The Capital Account of the government refers to transactions that result in changes in the assets or liabilities of the government. It includes the creation of government assets, such as investments in infrastructure or other long-term projects, and changes in liabilities like borrowing or debt repayment.

Key components of the Capital Account include:

• Expenditure on infrastructure projects (roads, buildings, etc.).
• Loans given by the government to others.
• Repayment of loans by the government.
• Proceeds from disinvestment or sale of government assets.
• Borrowing and debt obligations of the government.

This is different from the Revenue Account, which deals with the income and routine expenditure of the government.

Additional Information:

The Capital Account reflects long-term changes in the financial position of the government, impacting the overall fiscal deficit.

Other Options:

• Revenue of the Government: Revenue Account This belongs to the and includes income from taxes, fees, and other recurring sources.
• Assets and Liabilities of the Private Sector: These are not part of the government’s Capital Account. They pertain to private entities and are handled differently in economic analysis.
• Revenue of the Private Sector: This is unrelated to government accounts and involves the income generated by private businesses.