(a) Distinguish b

A.

B. No, disinvestment’ and ‘loan proceeds from abroad do not constitute revenue receipts of the government due to the following reasons:

● Disinvestments are capital receipt as it leads to a reduction in the assets.

● Loans proceeds from abroad are also capital receipt as it increases the liabilities of the government.

OR

Revenue deficit: Total revenue expenditure-Total revenue reciept

= Total revenue expenditure - (Tax revenue +non tax revenue)

= 1500- (1000+500)

= 1500+1500

= Rs 3000 crore

Fiscal deficit = Total expenditure-(Revenue receipt+Disinvestment proceeds)

= (1500+480) + (1000+150+50)

= RS780 crore