Q. Which of following are part of capital receipts of government:

1. Market Borrowings of the government
2. Borrowing by the government from the Reserve Bank and commercial banks
3. Small savings (Post-Office Savings Accounts, National Savings Certificates, etc.)
4. PSU disinvestment

Select the correct answer from the codes given below:
Answer: All of the above
Notes: All the above constitute the capital receipts of the government. All those receipts of the government which create liability or reduce financial assets are termed as capital receipts. When government takes fresh loans it means that in future these loans will have to be returned and interest will have to be paid on these loans. Similarly, when government sells an asset, then it means that in future its earnings from that asset, will disappear. Thus, these receipts can be debt creating or non-debt creating. Market Borrowings of the government, Borrowing by the government from the Reserve Bank and commercial banks, Small savings (Post-Office Savings Accounts, National Savings Certificates, etc.), PSU disinvestment are examples of capital recipits.