Is the following a revenue receipt or a capital receipt in the context of government budget and why?
Is the following a revenue receipt or a capital receipt in the context of government budget and why?
(i) Tax receipts,
(ii) Dis-investment.
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(i) Tax Receipts- These are revenue receipts because these neither create any liability nor reduce asset.
(ii) Dis-investment-These are capital receipts because it reduces assets.
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Answered
(i) Tax receipts are revenue receipts as they are regular in nature & they neither increase liability nor reduce assets.
(ii)Disinvestment- capital receipts as it reduce assets.
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Answered