In the Annual Budget 2025, the Government of India set up disinvestment targets of ₹80000 crore. Such proceeds from disinvestment can be classified as ______ receipts in the government budget as it leads to _____ of the government.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → capital, decrease in assets
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Disinvestment refers to the sale of government-owned assets, typically its stake in public sector enterprises.
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It reduces the asset holdings of the government (like ownership in PSUs), not its liabilities.
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Since it involves receipt of money from asset sales and not from regular income sources like taxes, it is classified as a capital receipt.