Define non-debt creating capital receipts.

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Solution

Non-debt creating capital receipts refer to those receipts of the government which lead to a decrease in assets, and not an increase in liabilities. For instance, disinvestment is a non-debt creating capital receipt.

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Particulers	(Rs. in Crore)
(i) Primary Deficit	8,000
(ii) Fiscal Deficit	11,000
(iii) Non-debt Creating Capital Receipts	9,000
(iv) Revenue Deficit	5,000

Particulers	(Rs. in Crore)
(i) Revenue Deficit	6,000
(ii) Revenue Expenditure	11,000
(iii) Capital Expenditure	14,000
(iv) Non-debt Creating Capital Receipts	8,000
(v) Interset Payments	7,000

Q. With reference to the Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI), consider the following statements:

Which of the above statements is/are correct?

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