Question

Distinguish between revenue receipts and capital receipts. Give an example of each. 

Answer 1

Basis of Difference	Capital Receipts	Revenue Receipts
Definition	Capital receipts refer to those receipts of the government which causes a reduction in the government assets and also creates a liability for the government.	Revenue receipts refer to those receipts of the government which neither creates any liability nor creates any reduction in the assets of the government.
Impact	Reduce government assets and create liabilities for government.	No effect on government assets and liabilities.
Example	Recovery of loans	Tax receipts