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Revenue Receipts in the government budget include :

(A) Government Borrowings

(B) Tax Revenue

(C) Interest receipts on loans by government

(D) Dividends earned by government on its investment

Choose the correct answer from the options given below :

Solution

Correct Option: 2

Revenue Receipts neither create liability nor reduce assets. Government Borrowings (A) create liability, so they are Capital Receipts. Tax Revenue (B), Interest receipts (C), and Dividends (D) are Revenue Receipts - tax revenue directly and interest/dividends as non-tax revenue. Hence B, C and D.

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