Question

Disinvestment receipts from the sale of a government company.

Hint:

Revenue receipts are regular inflows that do not impact assets or liabilities, whereas capital receipts involve transactions that alter the financial structure of the government.

Answer 1

{Classification:} Disinvestment receipts from the sale of a government company are classified as {Capital Receipts}. {Justification:}
- Capital receipts either create liabilities or reduce assets.
- Selling a government company results in a reduction of government-owned assets.
- The government generates funds by reducing its ownership stake, making this a capital transaction. {Conclusion:} Since disinvestment reduces the asset base of the government, it falls under capital receipts.