Question

Which one of the following statements is CORRECT with reference to government budget?

विकल्प

• Interest paid on government’s borrowing reduces liability of the government.

• Financial aid received from the World Bank for cyclone affected areas is revenue receipt.

• Grants given by the central government to the state government is capital expenditure.

• Profits of BHEL, a PSU, increase the assets of the government.

Answer 1

Financial aid received from the World Bank for cyclone affected areas is revenue receipt.