Q. 22

(a) Distinguish b

Answer :

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


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