REVENUE RECEIPTS CAPIRAL RECEIPTS

56.  REVENUE RECEIPTS
CAPITAL RECEIPTS
1.      Meaning
Revenue receipts include
(a)    Tax Revenue
(b)   Non-Tax Revenue

2.      Uses For
Revenue receipts are used for revenue expenditure, which is mostly non-development such as interest payment, subsidies, etc.

3.      Debt Obligation
Revenue receipts do not create debt obligation for the Government and therefore, there is no repayment.

4.      Budget Account
Revenue receipts are included in revenue account of budget.

Capital Receipts include
(a)    Borrowings
(b)   Recovery of Loans
(c)    Other Sources

Capital Receipts are used for capital expenditure, which is mostly development in nature such as infrastructure.


Capital receipts such as borrowings create debt obligation for the Government and therefore, there is need for repayment.


Capital Receipts are included in capital account of budget.