Question 31
Public FinanceWhich of the following is not an item of capital expenditure?
- A.building of roads and bridges
- B.supply of electricity
- C.building of dams
- D.building of harbours
- E.payment of interest on loans.
Show the answer and explanation
Answer: E (payment of interest on loans.)
Explanation
Interest on loans is a recurrent expenditure; the others create lasting assets and are capital expenditure.