Which one of the following is a capital receipt in government budget?
A
Interest receipts on loans given by the Government to other parties
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B
Dividends and profits from public sector undertakings
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C
Borrowing of the Government from public
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D
Property tax receipts
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Solution
The correct option is A Interest receipts on loans given by the Government to other parties CapitalReceiptsinGovernmentBudget: The main items of capital receipts are loans of the government by the public borrowings through the RBI by the sale of treasury bills, loans received from foreign governments and bodies. Main items are: (i) Recoveries of loans
(ii) Market borrowing and other loans (iii) External assistance (iv) Disinvestment.