With reference to the components of the Union Budget in India, consider the following statements: 1. A capital receipt includes all forms of borrowing and loan recoveries received by the government. 2. Revenue Budget shows the government's income and expenditure related to asset creation. 3. Interest received on loans given by the government is part of capital receipts. Which of the statements given above is/are correct? |ForumIAS

[A] 1 only

[B] 1 and 2 only

[C] 2 and 3 only

[D] 1 and 3 only

Answer: A

Notes:

Explanation:

Capital receipts include loan recoveries and borrowings, both domestic and foreign. These are non-revenue receipts and used for financing development or repaying existing debt.
The Revenue Budget deals with revenue income and revenue expenditure, not asset creation. Asset creation is part of capital expenditure, which is reflected in the Capital Budget.
Interest received on loans given by the government is considered revenue receipt, not capital receipt.

Source- TMH Indian Economy by Ramesh Singh

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