Question

Which of the following receipts would NOT be considered a Revenue Receipt for a State Government?

• A. Sale of shares in a public sector undertaking.
• B. Recovery of loans given to others.
• C. Interest on loans given by the state government.
• D. Fines and penalties imposed by the state government.

Answer 1

Answer:

B. Recovery of loans given to others.

• This is a capital receipt because it reduces the government's assets (the outstanding loan).