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Match List - I with List - II.

List - I (Transactions)List - II (Heads)
(A) Loans extended by the Indian Government to the Sri Lankan Government(I) Revenue Receipts
(B) Expenditure by the Government on Covid Vaccines(II) Capital Receipts
(C) Dividend received by the Government on shares bought by it(III) Capital Expenditure
(D) Public Provident Fund held by Public(IV) Revenue Expenditure

Choose the correct answer from the options given below :

Solution

Correct Option: 3

Loans given by Indian Govt to Sri Lanka create a financial asset, so it is Capital Expenditure (III). Covid vaccine expenditure neither creates asset nor reduces liability, hence Revenue Expenditure (IV). Dividend received is Revenue Receipt (I). PPF creates a liability for the government, so Capital Receipt (II). Match: A-III, B-IV, C-I, D-II.

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