Question

Capital receipts include ______.

Options

• dividends from public sector enterprises

• recovery of loans only

• market borrowings only

• both recovery of loans and market borrowings

Answer 1

Capital receipts include recovery of loans and market borrowings.

Explanation:

Capital receipts are defined as government inflows that either create a financial liability or reduce existing assets. Market borrowings are capital receipts because they create a future repayment liability, while the recovery of loans qualifies because it reduces the government's financial assets (claims on borrowers).