BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Income received from public borrowings.
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Income received from non-tax sources
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All of the above
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None of these
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Detailed explanation-1: -Capital Budget consists of capital receipts (like disinvestment, borrowing, loans from public or foreign governments, Reserve Bank of India, etc) and capital expenditure (like expenditure on development of machinery, health facilities, etc).
Detailed explanation-2: -Capital payments consist of capital expenditure on acquisition of assets like land, buildings, machinery, and equipment, as also investments in shares, loans and advances granted by the Central government to state and Union Territory governments, government companies, corporations and other parties.
Detailed explanation-3: -Sale of shares of a Public Sector Undertaking (PSU) to X Limited (Private Company) is a capital receipt in the Government Budget.
Detailed explanation-4: -Borrowing leads to cash inflow, which means it is a receipt. Since borrowing increases the liability for the government, it is listed as capital receipt.