Question

Which is the most important head of capital receipts?

• A. Public debt
• B. Small savings
• C. The income from the sale of shares of government enterprises
• D. None of these

Hint:

The sale of shares of government enterprises generates substantial revenue for the government and is a major source of capital receipts.

Answer 1

The Correct Option is C

Step 1: Understanding capital receipts.
Capital receipts refer to funds that the government receives, which do not have to be repaid. The most significant source of capital receipts is the sale of shares in government enterprises, as it brings in substantial funds.

Step 2: Analyzing the options.
(A) Public debt: Public debt is a capital receipt, but it needs to be repaid, making it less significant than the sale of government shares.
(B) Small savings: Small savings are important but do not bring in the same level of revenue as the sale of government shares.
(C) The income from the sale of shares of government enterprises: Correct. The sale of government enterprises is one of the largest sources of capital receipts, providing the government with significant revenue.
(D) None of these: This is incorrect, as the sale of government shares is the primary source of capital receipts.

Step 3: Conclusion.
The correct answer is (C) The income from the sale of shares of government enterprises, as it is the most important source of capital receipts.