What are non-debt creating capital receipts? Give two examples such receipts.

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Solution

Capital receipts are those receipts of government which either create liabilities or reduce assets. Capital receipts excluding borrowings are known as non-debt creating capital receipts.
Examples: Disinvestment, Recovery of loans.

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Define non-debt creating capital receipts.

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

Find fiscal deficit, given the following information:

Items (Rs)

(i) Estimated total expenditure of the government 1,50,000

(ii) Revenue receipts 1,20,000

(iii) Non-debt capital receipts 10,000

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