Question

"In the Annual Budget 2022-23, the Government of India set up disinvestment targets of ₹ 65,000 crore".

Such proceeds from disinvestment can be classified as ______ receipts in the Government Budget as it leads to ______ of the Government.

Options

• capital, decrease in assets

• revenue, increase in assets

• capital, increase in liabilities

• revenue, decrease in liabilities

Answer 1

"In the Annual Budget 2022-23, the Government of India set up disinvestment targets of ₹ 65,000 crore".

Such proceeds from disinvestment can be classified as capital receipts in the Government Budget as it leads to decrease in assets of the Government.

Explanation:

Sale Proceeds from disinvestment can be organised as government capital receipts because they result in a decrease in government assets.