Which of the following is an example of capital receipts?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Revenue from the sale of government assets.
Revenue from the sale of government assets is an example of capital receipts. Capital receipts are funds obtained by the government through non-recurring sources, typically for long-term investments. The sale of government assets such as land, buildings, or state-owned enterprises is considered a capital receipt because it involves the transfer of ownership of physical assets. Unlike revenue receipts, which are recurrent and contribute to day-to-day expenses, capital receipts result in a permanent change in the government’s asset base and do not affect the ongoing operational budget.