Question

Which one of the following forms the important receipts of the Capital Budget?

• A. Net market borrowing
• B. Net small savings
• C. Provident funds collections
• D. All of the above

Answer 1

The correct option is D All of the above

Capital Budget consists of capital receipts and payments. It also incorporates transactions in the public account. Capital receipts are loans raised by the government from the public which are called market loans, borrowings by the government from the Reserve Bank and other parties through sale of treasury bills, loans received from foreign bodies and governments, and recoveries of loans granted by the central government to state and union territory governments and other parties. Net small savings and Provident funds collections form a part of the Public account. Thus, the answer is all of the above.