Question

What is the basis of classifying government receipts into revenue receipts and capital receipts? Give one example of each.

Answer 1

Basis	Revenue Receipts	Capital Receipts
Effect on Assets and Liabilities	Do not create liabilities or reduce assets.	Do not create liabilities or reduce assets.
Nature	Regular income for the government.	Non-recurring income from borrowing or asset sales.
Examples:	Tax revenue (income tax, GST). Non-tax revenue (fees, interest income).	Tax revenue (income tax, GST). Non-tax revenue (fees, interest income).