Base of categorizing receipts into revenue and capital
What is the base of categorizing receipts into revenue and capital receipts?
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Answer: Revenue receipts are such which neither make a liability for the government nor decrease the assets of government like sales tax, income tax, fees, profits and so on. Capital receipts are such that either makes a liability for government or decrease assets like borrowings, disinvestment, recovery of loans and so on.
Elucidate the basis of categorizing government receipts into revenue receipts and capital receipts. Answer: Revenue Receipts: The government revenue receipts are such receipts A) that neither makes liability
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