Is borrowing by the government a revenue receipt?

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Solution

No, because it creates a liability (for the government) of repayment.

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Similar questions

Find Fiscal Deficit from the information given below:

Items (Rs in lakh)

(i) Borrowing by the government 600

(ii) Revenue receipts 100

(iii) Capital receipts 750

(iv) Interest payment 150

Categorise the following government receipts into revenue and capital receipts. Give reasons for your answer.

(i) Receipt from sale of shares of a public sector undertaking.

(ii) Borrowing from public.

(iii) Profit of public sector undertakings.

(iv) Income tax received by government.

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

Items (Rs in lakh)

(i) Tax revenue 50

(ii) Revenue expenditure 110

(iii) Capital expenditure 210

(iv) Non-tax revenue 30

(v) Capital receipts net of borrowing 140

(vi) Interest payments 20

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