Advertisement Remove all ads

Giving Reasons, Classify the Following into Revenue Receipts and Capital Receipts : Recovery of Loans - Economics

Short Note

Giving reasons, classify the following into revenue receipts and capital receipts :
Recovery of loans

Advertisement Remove all ads

Solution

Recovery of loans:
The state government sometimes take a loan from the Central government to cope up with the emergency situations. When these loans are recovered by the Central government, they reduce the assets of the government. Thus, they are classified as capital receipts.

Concept: Classification of Receipts
  Is there an error in this question or solution?
Advertisement Remove all ads
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×