Question map
Not attempted Correct Incorrect ★ Bookmarked
Loading…
Q38 (CAPF/2024) Economy › Government Finance & Budget › Budget classification

Which of the following is a part of the capital receipt of the Government of India? 1. Disinvestment receipts 2. Interest receipts 3. Small savings 4. Net market borrowing Select the answer using the code given below:

Result
Your answer: —  Â·  Correct: D
Explanation

Capital receipts are government receipts that either create a liability or reduce assets [1]. Disinvestment receipts (sale of PSU shares) are capital receipts because they reduce government assets [5][3]. Net market borrowings and loans raised from the public are classified as capital receipts as they create a future liability [1][3]. Small savings, including postal deposits and National Savings Certificates, are also part of capital receipts under the National Small Savings Fund (NSSF) [3][4]. Conversely, interest receipts are classified as non-tax revenue receipts because they are recurring income from loans provided by the government and do not reduce assets or create liabilities [2][4]. Therefore, items 1, 3, and 4 are capital receipts, while item 2 is a revenue receipt. This distinction is vital for the Union Budget's classification of the Capital and Revenue accounts [2].

Sources

  1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.4 Budget Classification > p. 152
  2. [5] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.4 Budget Classification > p. 151
  3. [3] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > 1. Debt Creating Capital Receipts > p. 105
  4. [4] https://www.indiabudget.gov.in/doc/rec/allrec.pdf
  5. [2] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 5: Government Budget and the Economy > 5.1.2 Classification of Receipts > p. 68
How others answered
Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.
Community Performance
Out of everyone who attempted this question.
100%
got it right
✓ Thank you! We'll review this.

SIMILAR QUESTIONS

IAS · 2025 · Q10 Relevance score: 15.81(s)

Consider the following statements : I. Capital receipts create a liability or cause a reduction in the assets of the Government. II. Borrowings and disinvestment are capital receipts. III. Interest received on loans creates a liability of the Government. Which of the statements given above are correct?

CDS-I · 2021 · Q34 Relevance score: 8.41(s)

The excess of total expenditure of Government over its total receipts, excluding borrowings, is known as

IAS · 2001 · Q73 Relevance score: 8.18(s)

Match List I with List II and select the correct answer using the codes given below the Lists

List I (Term) | List II (Explanation)
I. Fiscal deficit | (A) Excess of Total Expenditure over Total Receipts
II. Budget deficit | (B) Excess of Revenue Expenditure over Revenue Receipts
III. Revenue deficit | (C) Excess of Total Expenditure over Total Receipts less borrowings
IV. Primary deficit | (D) Excess of Total Expenditure over Total Receipts less borrowings and Interest Payments

IAS · 2023 · Q25 Relevance score: 7.73(s)

Consider the following markets : 1. Government Bond Market 2. Call Money Market 3. Treasury Bill Market 4. Stock Market How many of the above are included in capital markets?

CDS-I · 2016 · Q106 Relevance score: 7.60(s)

Which of the following is/are example(s) of ‘Near Money’ ? 1. Treasury Bill 2. Credit Card 3. Savings accounts and small time deposits 4. Retail money market mutual funds Select the correct answer using the code given below: