Receipts in budget can be capital or revenue Which of these is are capital receipts Loan recov...........

Economic Affairs Public Finance and Debt Management

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Receipts in budget can be capital or revenue. Which of these is/ are capital receipts?

Loan recoveries
Provident funds deposits
Grants

Select the correct answer using the codes given below

1 and 2

1 and 3

2 and 3

1, 2 and 3

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Explanation:

First option is correct.

A receipt that results in either reduction in government assets (sale of share, disinvestment) or increase in some liability (government borrowings) is a capital receipt. These receipts are NOT a part of normal operations of government business. Capital Receipts include market loans, external loans, small savings, Government Provident Funds, Accretions to various Deposit Accounts, Depreciation and Reserve Funds of various departments like Railways.