| Receipts in budget can be capital or revenue. Which of these is/are capital receipts? |
| 1. Loan recoveries |
| 2. Provident funds deposits |
| 3. Grants |
| Select the correct answer using the codes given below. |
A) 1 and 2 only
B) 1 and 3 only
C) 2 and 3 only
D) 1, 2 and 3
Correct Answer: A
Solution :
[a] Loan recoveries are the money, which the government had lent out in past, their capital comes back to the government when the borrowers repay them as capital receipts, long-term capital accruals to the government through the Provident Fund (PF), Postal Deposits, various small saving schemes (SSSs) and the government bonds sold to the public (as Indira Vikas Patra, Kisan Vikas Patra, Market Stabilization Bond, etc.) are also capital receipts. Grants are revenue receipts.
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