Question

Which of the following is a capital receipt for a state government?

• A. Sale of land owned by the state government
• B. Grants received from international organizations
• C. Loans received from the central government
• D. Dividend received from a public sector undertaking

Answer 1

Answer:

C. Loans received from the central government

• Capital receipts are receipts that create a liability or reduce a financial asset. Loans received by the state government increase its liabilities.