25 Dec

Government Receipts – Capital vs Revenue

TypeDefinition / Key FeatureExamplesImpact
Capital ReceiptsCreate liability or reduce assets; not part of current incomeBorrowings (RBI, market loans), Disinvestment (PSU shares), Recovery of loans, Small savings/Provident fundAffects assets & liabilities; used for capital expenditure
Revenue ReceiptsRegular income; no liability createdTax revenue (Income tax, GST, Customs duty), Non-tax revenue (Dividends from PSUs, fees, fines), Interest received, Royalties (oil, coal, minerals)Adds to current income; used for day-to-day expenditure
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