WBCS.LIVE practice question

Which of the following is not a capital receipt in the government budget?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Loan recoveries
  2. Provident fund deposits
  3. PSU disinvestment
  4. Grants

Correct answer and explanation

Correct answer: Grants

Explanation: āœ… Correct Answer: D) Grants šŸ“š Explanation: In a government budget, 'Capital Receipts' are those that create a debt or reduce an asset, such as loans. 'Grants' are categorized as Revenue Receipts because they do not have to be repaid. They are essentially gifts of money from one government or organization to another. This distinction is vital for understanding how national finances are organized.