Q. With reference to Capital Receipts in the Union Government’s financial accounts, consider the following statements:
1.Capital receipts include all non-revenue receipts that may be used for investment or development purposes.
2.Borrowings from institutions like the World Bank and IMF are classified as capital receipts.
3.Interest received on loans given by the government is a capital receipt.
Which of the statements given above is/are correct?
Answer: A
Notes:
Explanation:
- Capital receipts are non-revenue receipts meant for investment/development but may be diverted to meet revenue needs.
- External borrowings from institutions like the World Bank, IMF, etc., are part of capital receipts.
- Interest received on loans is part of revenue receipts, not capital receipts. Only the loan principal recovery is a capital receipt.
Source: Indian Economy (NCERT)
