Question

Disinvestment is a ______ receipt.

Options

• Revenue

• Capital

• Primary

• None of the above

Answer 1

Disinvestment is a Capital receipt.

Explanation:

Because they reduce assets, disinvestments are capital receipts. Capital receipts are receipts that create a corresponding liability for the government or result in a reduction in the government's assets, such as government loans, disinvestment of any PSUs, and so on.