Question

Which of the following transactions would be categorized as a Capital Receipt for a State Government?

• A. Interest received on loans advanced to other states.
• B. Grants received from the Central Government for specific schemes.
• C. Proceeds from the sale of state government bonds.
• D. Funds received from the public provident fund.

Answer 1

Answer:

D. Funds received from the public provident fund.

• Money received from schemes like the public provident fund are considered public debt and are a form of borrowing, making them a capital receipt.