SSC CHSL 2023 PYQ — Question 45

The correct answer is option 1 i.e. Disinvestment of Public Sector Banks by the Government.

 

The disinvestment of Public Sector Banks (PSBs) by the Government is an example of a capital receipt. A capital receipt refers to the funds received by the government that are not part of its regular revenue, and it typically involves transactions related to the sale or transfer of assets or liabilities.

In the case of disinvestment, the government sells a portion of its stake in PSBs to private investors. The money received from this sale is not a regular source of income like taxes but represents the transfer of ownership of government assets to the private sector. This receipt is considered capital because it does not form part of the government's regular income but is a one-time inflow related to asset management.

Unlike revenue receipts, which are recurring, capital receipts are non-recurring and are primarily used to reduce the government's debt or finance capital expenditures.