Question

What are capital receipts?

• A. Receipts that either create liabilities or reduce assets of the government are called capital receipts.
• B. Receipts that either create assets or reduce liabilities of the government are called capital receipts.
• C. Tax and non-tax revenues added together are called capital receipts.
• D. Tax revenues subtracted from non-tax revenues are called capital receipts.

Answer 1

The correct option is A Receipts that either create liabilities or reduce assets of the government are called capital receipts.

Capital receipts either create liabilities or reduce assets of the government. Capital receipts can be in the form of disinvestment. These can also be in the form of recovery of loans given by the centre to the states.