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Question : 4
Total: 5
What are non-debt creating capital receipts ? Give two examples of such receipts.
Solution:
Non-debt creating capital receipts are the receipts which do not create any liability of repayment on the government rather it makes only addition to the existing capital account. For example recovery of loans, proceeds from sale of public enterprises (i.e. disinvestment etc.). These do not give rise to debt.
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