In which case govt is under no future obligation to return the amount 1 Capital Recei...........

Economic Affairs Public Finance and Debt Management

Download Solution PDF

In which case govt is under no future obligation to return the amount

1. Capital Receipts

2. Revenue Receipts

3. Borrowings from RBI

Choose the correct statement/statements using the codes given below:

Only 1

Only 2

1 and 3

2 and 3

छोटे Courses बड़े Results

Master Public Finance and Debt Management

Prepare through Micro-courses

Try Now

Explanation:

2nd option is correct.

Capital receipts refer to those receipts which either create a liability or cause a reduction in the assets of the government. They are non-recurring and non-routine in nature.

Revenue receipts refer to those receipts which neither create any liability nor cause any reduction in the assets of the government. They are regular and recurring in nature and government receives them in its normal course of activities.