Understanding Capital Receipts vs. Revenue Receipts
A capital receipt is a receipt that is not generated from the normal day-to-day trading activities of a business or government. These receipts are typically non-recurring and affect the capital or asset base. Examples include borrowings, sale of fixed assets, or government loans.
A revenue receipt, conversely, arises from regular business operations and is recurring. Examples include sales revenue, taxes, fees, and interest income.
Analyzing the Options
- Income Tax collected: This is a primary source of revenue for the government, collected regularly from taxpayers. It is a revenue receipt.
- Dividend from PSUs: Dividends received by the government from its investments in Public Sector Undertakings represent income generated from those investments. This is typically treated as a revenue receipt.
- Loan taken from RBI: Borrowing funds, whether from the Reserve Bank of India (RBI) or other sources, increases liabilities and is not derived from operational activities. It affects the government's overall financial position and is considered a capital receipt.
- Sale proceeds of public services: Income generated from providing public services is the core function for many government entities. This represents earnings from regular operations and is a revenue receipt.
Conclusion
Based on the analysis, taking a loan increases the entity's liabilities and does not stem from regular operational income. Therefore, a Loan taken from RBI is the correct example of a capital receipt among the choices provided.
Similar Questions
- What was the main rationale for the policy of import substitution during the first seven Five Year Plans?
- Read the below statements marked as Assertion (A) and Reason (R). Mark the correct option:
Assertion (A): In macroeconomics, treating a single commodity as representative of all goods allows simplification of aggregate analysis.
Reason (R): This is because all individual goods always behave identically under inflationary trends. - What was the primary aim of import substitution policy in India’s early planning era?
- Read the below statements marked as Assertion (A) and Reason (R). Mark the correct option:
Assertion (A): GDP doesn’t really tell the whole story when it comes to how well people in a country are actually doing.
Reason (R): That’s mainly because it doesn’t take into account stuff like wear and tear of machines, pollution, or even how the money is divided among people. - The term 'Navratnas' in public sector reform refers to:
- Expansionary fiscal policy is NOT characterized by:
- What was a key equity-based goal of land reforms implemented after independence?
- Economic reforms in India were introduced in which year?
- How does Indian planning demonstrate responsiveness to feedback?
- What does "P" in LPG reforms stand for?
Important Questions from Economy
The Five Year Plan was first launched in
Which of the following was/were the feature(s) of Lenin’s New Economic Policy (NEP) for the Soviet Union?
1) Private retail trading was strictly forbidden
2) Private enterprise was strictly forbidden
3) Peasants were not allowed to sell their surplus
4) To secure liquid capital, concessions were allowed to foreign capitalists, but the State retained the option of purchasing the product of such concerns
Select the correct answer using the code given below:
Which one of the following was set as a target of average growth of GDP of India over the plan period 2012-2017 by the Approach Paper to the Twelfth Five year Plan?
In ________ economies, all productive resources are owned and controlled by the government.
Private ownership of the means of production is a feature of a _______ economy.
