Question

Which of the following describes a key characteristic of a revenue receipt for a State Government?

• A. It is a one-time payment received by the government.
• B. It is a recurring and regular source of income.
• C. It is used to finance capital expenditure or asset creation.
• D. It is a non-taxable income for the government.

Answer 1

Answer:

B. It is a recurring and regular source of income.

• Revenue receipts are inflows that are regular and do not create a liability or reduce an asset, such as taxes or fees.