Which of the following sources of receipts in government budget increases its liabilities?

Direct taxes

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Recovery of lans

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Borrowings

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Dividend from public sector undertakings

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Solution

The correct option is C Borrowings
Borrowings increase the government liabilities as it is a capital receipt and capital receipts either increase the liabilities or cause reduction in the assets of the government.

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Which of the following sources of receipts in government budget increases its liabilities?

The correct option is C BorrowingsBorrowings increase the government liabilities as it is a capital receipt and capital receipts either increase the liabilities or cause reduction in the assets of the government.

The correct option is C Borrowings
Borrowings increase the government liabilities as it is a capital receipt and capital receipts either increase the liabilities or cause reduction in the assets of the government.