UPSC Prelims 2025 · GS Paper 1 · Q10

Economy

Easy · Public finance / Budget

Consider the following statements about capital receipts in the government Budget:

1. All capital receipts either create a liability or reduce an asset of the government.

2. Borrowings and disinvestment proceeds are both examples of capital receipts.

3. Interest received by the government on loans it has given is a capital receipt.

Which of the statements given above are correct?