How can the gap between capital expenditure and capital receipts be reduced without borrowing? Suggest two ways.

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Solution

(i) The government can resort to disinvestment: selling its stake in public sector enterprises, and

(ii) The government can sell its surplus land.

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How can the gulf between capital expenditure and capital receipts be reduced without borrowing? Suggest two ways.

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How can the gap between capital expenditure and capital receipts be reduced without borrowing? Suggest two ways.

(i) The government can resort to disinvestment: selling its stake in public sector enterprises, and (ii) The government can sell its surplus land.

(i) The government can resort to disinvestment: selling its stake in public sector enterprises, and

(ii) The government can sell its surplus land.