Explanation:

Statement 1 is correct: Capital receipts are indeed those receipts of the government that create liability (e.g., loans, borrowings) or reduce financial assets (e.g., disinvestment proceeds). These receipts are typically used to finance capital expenditures or reduce debt. Statement 2 is correct: When the government sells a portion of its ownership (equity) in public sector companies through processes like disinvestment or privatization, the proceeds from this sale are categorized as capital receipts. These funds are used to reduce debt or finance capital expenditures. Statement 3 is incorrect: Capital receipts are generally non-recurring or one-time in nature. They do not occur regularly. They often result from activities like selling assets or borrowing to finance specific capital projects or manage debt. In contrast, revenue receipts (e.g., taxes, non-tax revenue) are recurring and form the regular income of the government.