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Capital Budget

Which of the ...

Question

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

A

Direct taxes

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B

Recovery of loans

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C

Borrowings

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D

Dividend from public sector undertakings.

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Solution

The correct option is C
Borrowings

Out of the given options, borrowings increase the liabilities as the government is obliged to repay the borrowed funds.

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Q. Short answer type questions:
Giving reasons, categorise the following into revenue receipts and capital receipts: (i) Recovery of loans; (ii) Corporation tax; (Ili) Dividends on investments made by government; (iv) Sale of a public sector undertaking.

Q. Consider the following statements:
1. Revenue budget deals with receipts from taxation and non-tax sources and the expenditure met out from these sources.
2. Net recoveries of loans and advances to states are public sector enterprises form the revenue receipts of the government.
Which of the statements given above is/are correct?

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.

Q. The receipts from disinvestment of public-sector undertakings are shown under which one of the following sub-heads in the budget of the Government of India ?

Q. Identify the following as revenue receipts and capital receipts. Give reasons.
(i) Loans recovered from Public sector enterprises.
(ii) License and court fees received by the Government in the year 2014-15.
(iii) Loan taken from USA for the infrastructural developments.
(iv) Sale of shares held by Government in a PSU.
(v) Financial help from Microsoft for the victims of flood affected areas.
(vi) Amount borrowed from Japan for construction of Metro.
(vii) Dividend received by Government from a company.
(viii) Funds raised from public in the form of National Saving Certificates.
(ix) Sale of 40% shares of a public sector undertaking to a private enterprise.
(x) Profits of LIC, a public enterprise.

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