ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Loan from IMF is a revenue receipt. Higher revenue deficit necessarily leads to higher fiscal deficit. Borrowings by the government represent a situation of fiscal deficit. Revenue deficit is the excess of capital received over the revenue receipts.

Detailed explanation-2: -interest loans taken, etc., are some example of capital receipts. received on loans (advanced), royalty, etc., are some examples of revenue receipts.

Detailed explanation-3: -(d) Grants received from foreign government are revenue receipt as it does not lead to increase or decrease in assets or liabilities of the government.

Detailed explanation-4: -Capital receipts are receipts that create liabilities or reduce financial assets. They also refer to incoming cash flows. Capital receipts can be both non-debt and debt receipts. Loans from the general public, foreign governments and the Reserve Bank of India (RBI) form a crucial part of capital receipts.