CBSE 2014 Class 12 Economics Outside Delhi Set-1

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Question : 9
Total: 19
Is the following a revenue receipt or a capital receipt in the context of government budget and why?
(i) Tax receipts
(ii) Disinvestment
Solution:  
(i) Tax receipts are revenue receipts as these receipts neither creates any liability nor it creates any reduction in the assets of the government.
(ii) Disinvestment is treated as capital receipts because it results in the reduction of government assets.
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