Which of the following is/are included in the capital budget of the Government of India? 1. Expenditure on acquisition of assets like roads, buildings, machinery, etc. 2. Loans received from foreign governments 3. Loans and advances granted to the States and Union Territories Select the correct answer using the code given below.

Option (d) is correct because the Capital Budget includes all transactions that create or reduce the government's assets and liabilities, such as capital expenditure on infrastructure (Statement 1), capital receipts from foreign borrowings (Statement 2), and loans granted to States which function as financial assets (Statement 3). Option (a) is a common mistake for those who overlook that the capital budget encompasses both receipts (liabilities) and expenditures (assets), not just physical infrastructure. The core concept tested is the classification of the Union Budget into Revenue and Capital accounts based on their long-term impact on the government's balance sheet.