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Question
Answer the following question.
How are capital receipts different from revenue receipts? Discuss briefly.
Solution
The difference between capital receipts and revenue receipts is given as follows:
| Basis | Capital Receipts | Revenue Receipts |
| Effect on government assets | Capital receipts refer to those receipts of the government, which cause a reduction in the government assets | Revenue receipts are those receipts of the government which does not cause any reduction in the assets of the government. |
| Effect on government liability | Capital receipts refer to those receipts of the government, which create a liability for the government | Revenue receipts those receipts of the government which does not create any liability for the government |
| Examples | These receipts comprise of recovery of loans, borrowings of governments and other liabilities of the government | These receipts comprise of tax and non-tax receipts, duties and fines, interest and dividends receipts on government investments and assets |
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|
2019-2020 वास्तविक Actuals |
||
| 1. | Revenue Receipts | 1684059 |
| 2. Tax Revenue (Net Tax Revenue) | 1356902 | |
| 3. Non-Tax Revenue | 327157 | |
| 4. | Capital Receipts | 1002271 |
| 5. Recovery of Loans | 18316 | |
| 6. Others Receipts | 50304 | |
| 7. Borrowings and Other Liabilities | 933651 | |
| 8. | Total Receipts (1 + 4) | 2686330 |
| 9. | Total Expenditure (10 + 13) | 2686330 |
| 10. On Revenue Account | 2350604 | |
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| Column I | Column II |
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