Question

Which of the following is a primary source of a State Government's Capital Receipts?

• A. Grants from the Central Government.
• B. Interest receipts.
• C. Borrowings and loans.
• D. Dividends from public sector undertakings.

Answer 1

Answer:

C. Borrowings and loans.

• Borrowings from the public, financial institutions, or the Central Government are the primary sources of capital receipts as they create a liability for the government.