An expenditure which results in the creation of assets or reduction in liabilities is treated as capita/ expenditure. Expenditure incurred on construction buildings, roads, bridges etc. and buying land are the examples of capital expenditure.
It also includes loans and advances granted by Central Government to State and Union Territory Governments, Government companies, Corporations and other parties. Capital expenditure is incurred on the following capital accounts:
1. Capital Account of General Services. It covers the following:
(i) Police
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(ii) Public works
(iii) Defense services.
2. Capital Account of Social Services. It covers the following:
(i) Education
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(ii) Sports
(iii) Urban Development
(iv) Housing
(v) Information
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vi) Broadcasting
3. Capital Account of Economic Services. It covers the following:
(i) Capital Account of Agriculture and Allied Activities
(ii) Capital Account of Rural Development
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(iii) Capital Account of Transport
(iv) Capital Account of Energy
(v) Capital Account of Industry and Mines
(vi) Capital Account of Communications