With reference to government receipts in India, consider the following statements: 1. Total receipts of the government include both revenue and non-revenue sources. 2. Interest received from loans given to public institutions within and outside the country is classified as non-tax revenue. 3. Grants received by the Central Government are considered internal revenue receipts. Which of the statements given above is/are correct? |ForumIAS

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: A

Notes:

Explanation:

Total receipts include all money accruing to the government, whether through revenue (like taxes) or non-revenue sources (like borrowings).
Interest income from loans given by the government (internal or external) falls under non-tax revenue receipts.
Grants received by the Central Government are external in nature (i.e., from foreign sources), whereas internal grants are those received by state governments from the Centre.

Source- TMH Indian Economy by Ramesh Singh

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