With reference to the Indian economy, which of the following is/are considered non-tax revenue receipts of the Central Government?
1. Dividends and profits from public sector enterprises.
2. Interest receipts on loans given to State Governments.
3. Disinvestment proceeds from sale of public sector shares.
Select the correct answer using the code below:
Answer and explanation
Correct answer: A. 1 and 2 only
- Step 1: Revenue receipts do not create liabilities or reduce assets. Dividends from PSUs and interest on loans are recurring non-tax revenue receipts.
- Step 2: Disinvestment proceeds reduce government equity assets, and are therefore classified as non-debt Capital Receipts, not revenue receipts.
- Step 3: Hence, only 1 and 2 are non-tax revenue receipts.
Answer
1 and 2 only.
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