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Answer

Correct Option is 1 only

Statement 1: The main difference between revenue receipts and capital receipts is that in the case
of revenue receipts, government is under no future obligation to return the amount, i.e., they are non-
redeemable. But in case of capital receipts which are borrowings, government is under obligation to return the
amount along with Interest.
Statement 2: Capital receipts may be debt creating or non-debt creating. So, 2 is wrong.
Examples of debt creating receipts are—Net borrowing by government at home, loans received from foreign
governments, borrowing from RBI. Examples of non-debt capital receipts are—Recovery of loans, proceeds from
sale of public enterprises (i.e., disinvestment), etc. These do not give rise to debt.  

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