Q. 33.7( 3 Votes )

What are the main items of the capital receipt?

Answer :

Capital receipts are the receipts that either creates any liability or reduce any asset. It includes items that are nonrepetitive and nonroutine. It includes the following:

i. Borrowing: It is done to meet the financial requirements of the country either domestically from the general public by issuing bonds in the government market or externally from the international financial institutions and foreign countries.


ii. Recovery of loans and advances: the loans extended to other countries are an asset to the government. It includes the recovery of loans granted by the central government to the state and union territory government.


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