Which of the following is a capital receipt in the government budget?
A. Borrowings
B. Interest receipts
C. Tax revenue
D. Dividends from public sector enterprises
Answer: Option A
Solution (By JKSSB Mock Tests)
Capital receipts create liability or reduce assets. Borrowings create a liability for the government and are therefore capital receipts. Tax revenue, interest receipts and dividends are revenue receipts.
Explanation:
Interest on public debt is a transfer payment and is not included in national income as it does not correspond to any current production of goods or services.
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