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Standard XII

Economics

Capital Budget

Government bo...

Question

Government borrowings from the Reserve Bank of India are listed as:

Capital expenditure

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Capital receipt

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Revenue receipt

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Revenue expenditure

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Solution

The correct option is B
Capital receipt

Borrowing leads to cash inflow, which means it is a receipt. Since borrowing increases the liability for the government, it is listed as capital receipt.

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Similar questions

The government budget of a hypothetical economy presents the following information, which of the following value represents Budgetary Deficit? (all fig. in crores of Rupees).

A. Revenue Expenditure = 25,000

B. Capital Receipts = 30,000

C. Capital Expenditure = 35,000

D. Revenue Receipts = 20,000

E. Interest Payments = 10,000

F. Borrowings = 20,000

Q. _______ arise because of the failure to differentiate between capital expenditure and revenue expenditure and capital receipts and revenue receipts.

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Q. In a government budget, revenue deficit is

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. If revenue receipts are

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and capital receipts

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, then how much is the revenue expenditure.

From the following data about a government budget, find (a) revenue deficit, (b) fiscal deficit, and (c) primary deficit:

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Government borrowings from the Reserve Bank of India are listed as:

The correct option is B Capital receipt Borrowing leads to cash inflow, which means it is a receipt. Since borrowing increases the liability for the government, it is listed as capital receipt.

The correct option is B
Capital receipt

Borrowing leads to cash inflow, which means it is a receipt. Since borrowing increases the liability for the government, it is listed as capital receipt.