Question

How are revenue receipts different from capital receipts in a budget? Give one example of each receipt.

Answer 1

	Revenue Receipts	Capital Receipts
1.	Revenue receipts are those receipts made by the government that do not incur any debt or reduce the government's assets.	Capital revenues are receipts that either increase liabilities or reduce the government's assets.
2.	The government is under no obligation to refund the money.	The government is obligated to return the money plus interest.
3.	It is a recurring in nature.	It is non-recurring in nature.
4.	For example, income tax, GST (Goods and Services Tax), and so on.	For example, borrowing from the public, receipts from the sale of shares in a public sector company, and so on.