Question

Statement (1): Postal charges are an example of commercial source of public revenue.

Statement (2): Fares and freights charged by the railways are an example of administrative revenue.

Options

• Both statements are true.

• Both statements are false.

• Statement 1 is true but Statement 2 is false.

• Statement 2 is true but Statement 1 is false.

Answer 1

Statement 1 is true but Statement 2 is false.

Explanation:

• Statement (1): The postal agency is a public utility seller, therefore its service charges generate commercial market revenue for the state.
• Statement (2): Railway fares are the rates paid for a transport service, and they are classified as commercial revenue rather than administrative regulatory collections.