Identify the incorrect statement from the following about the revenue budget of the government.

Option 1 -> Revenue budget records recurring transactions like salaries, interest payments, and subsidies - this is correct.

Option 2 -> Disinvestment proceeds are capital receipts, not revenue receipts, as they involve sale of government assets which is a non-recurring transaction - this is incorrect.

Option 3 -> Revenue budget indeed has two components: revenue receipts and revenue expenditure - this is correct.

Option 4 -> Salaries are revenue expenditure and are recorded in the revenue budget - this is correct.

Hence, Option 2 -> Proceeds from disinvestment are NOT recorded in the revenue budget. Disinvestment involves the sale of government's equity holdings in public sector enterprises, which is a capital transaction. Since it reduces the government's assets and is non-recurring in nature, it is classified as a capital receipt and recorded in the capital budget, not the revenue budget. Revenue budget only deals with recurring transactions that do not affect the government's assets or liabilities. -> correct