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The money a State Government receives from selling its shares in a public sector enterprise is a:

ARevenue receipt

BDisguised deficit

CFiscal deficit

DCapital receipt

Answer:

D. Capital receipt

Read Explanation:

  • The sale of a government asset, such as shares in a company, is a one-time transaction that reduces assets and is therefore a capital receipt.


Related Questions:

Which of the following is an example of an indirect tax?
Which of the following would lead to an increase in non-tax revenue?

 Consider the following statements regarding the ‘Regressive taxation’:

I.Regressive taxation method has decreasing rates of tax for increasing value or volume on which the tax is being imposed.

II.For regressive taxation are not any permanent or specific sectors for such taxes.

III.The regressive taxation method while appreciated for rewarding the higher producers or income-earners is criticised for being more taxing on the poor and low-producers.

Which of the following statement(s) is/are correct?


Which of the following is an indirect tax?
Non-tax revenue is part of which component of the government budget?