Question

Which of the following is a component of Budget Receipts?

• A. Revenue Receipts
• B. Capital Receipts
• C. Both (A) and (B)
• D. None of these

Hint:

Budget Receipts are split into: Revenue Receipts (regular income like taxes) and Capital Receipts (income from borrowing or selling assets).

Answer 1

The Correct Option is C

Budget Receipts (the income side of the budget) are further classified into two main categories:

Revenue Receipts: These are receipts that do not create any liability or cause a reduction in the assets of the government. They are regular and recurring. Examples include tax revenue (income tax, GST) and non-tax revenue (interest, dividends).
Capital Receipts: These are receipts that either create a liability for the government (e.g., borrowing) or reduce its assets (e.g., selling shares in public sector companies).
Both are components of the total budget receipts.