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
B) Nor decreases assets of the government example: Taxes, Non-Tax Revenue
Capital Receipts: Capital Receipts refer to such receipts of the government that
A) Tend to make a liability or
B) Causes decrease in its assets of the government. Example: Borrowings, Income from Disinvestment