Which one of the following is not a component of Revenue Receipts of

Which one of the following is not a component of Revenue Receipts of the Union Government?

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Corporate tax receipts

Dividends and profits

Disinvestment receipts

Interest receipts

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This question was previously asked in

UPSC CDS-1 – 2017

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Revenue Receipts are receipts that do not lead to a claim on the government and do not reduce government assets. Corporate tax receipts, dividends and profits (from PSUs), and interest receipts (on loans given by the government) are all recurring receipts that fall under Revenue Receipts. Disinvestment receipts are generated from the sale of government assets (shares in Public Sector Undertakings), which is a non-recurring receipt and falls under Capital Receipts because it reduces government assets.

Government receipts are classified into Revenue Receipts and Capital Receipts. Revenue Receipts are regular and non-debt creating, while Capital Receipts are irregular and can be debt-creating or asset-reducing.

Examples of Revenue Receipts include tax revenues (income tax, corporate tax, GST, customs, excise) and non-tax revenues (interest receipts, dividends, profits, fees, fines). Examples of Capital Receipts include market borrowings, external loans, disinvestment receipts, recovery of loans, and small savings.

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