Economics · Infrastructure and Budgeting
Evaluate the following three statements regarding the structural role of Infrastructure (Utilities and Construction) within the Secondary Sector: Statement I: The Construction Sector has a low-to-moderate forward linkage but an exceptionally high backward linkage within the economy. Statement II: The Electricity, Gas, Water Supply, and Other Utility Services sub-sector has an Employment Elasticity of GDP that is typically close to zero, meaning significant GVA growth creates very few new jobs. Statement III: Investment in Infrastructure is classified entirely as Revenue Expenditure in the Union Budget, as it primarily involves public works that do not yield direct financial returns to the government.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Statement I, Statement II, and Statement III are all correct.
- 2Only Statement II and Statement III are correct.
- 3Only Statement I and Statement III are correct.
- 4Only Statement I and Statement II are correct.✓
Correct answer
Only Statement I and Statement II are correct.
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