The dividends received by the Government from Public Sector Undertakings (PSUs) are__________
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. non-tax revenue receipts.
The dividends received by the Government from Public Sector Undertakings (PSUs) are considered non-tax revenue, a source of income for the government that doesn't come from taxes.
- Non-Tax Revenue: Dividends and profits earned by the government from PSUs are classified as non-tax revenue, meaning they are generated through means other than taxes.
- Capital Budget: These funds are part of the government's capital budget, representing a direct income for the government.
- Examples of PSUs: PSUs are companies or enterprises owned and managed by the Government of India or state governments, operating in various sectors like energy, telecommunications, banking, and transportation.
- Government's Role: The government holds a majority stake (51% or more) in PSUs.