Match List-I with List-II
| List-I | List-II | ||
| (A) | Fiscal deficit | (I) | Special assessment |
| (B) | Revenue payments | (II) | Disinvestment |
| (C) | Revenue receipts | (III) | Administration cost |
| (D) | Capital receipts | (IV) | Borrowing |
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → A-IV, B-III, C-I, D-II
The government budget has receipts and payments, each split into revenue and capital items. The gap between spending and receipts other than borrowing is the fiscal deficit.
| List-I | List-II | Reason |
|---|---|---|
| (A) Fiscal deficit | (IV) Borrowing | The fiscal deficit is spending minus receipts other than borrowing, so it shows how much the government must borrow. |
| (B) Revenue payments | (III) Administration cost | Revenue spending is for the normal running of government departments and creates no asset. |
| (C) Revenue receipts | (I) Special assessment | It is a non-tax revenue: it creates no liability and reduces no asset of the government. |
| (D) Capital receipts | (II) Disinvestment | Selling shares in public sector units reduces the government’s financial assets. |
Note: None of the NCERT books (2026-27, 2025-26, 2023-24 or pre-rationalised) uses the term ‘special assessment’. It is a charge on owners of property whose value rises because of a public work nearby, such as a new road or drain.
NCERT (2026-27): “Capital Receipts: The government also receives money by way of loans or from the sale of its assets. Loans will have to be returned to the agencies from which they have been borrowed. Thus they create liability. Sale of government assets, like sale of shares in Public Sector Undertakings (PSUs) which is referred to as PSU disinvestment, reduce the total amount of financial assets of the government. All those receipts of the government which create liability or reduce financial assets are termed as capital receipts.… Revenue Expenditure Revenue Expenditure is expenditure incurred for purposes other than the creation of physical or financial assets of the central government. It relates to those expenses incurred for the normal functioning of the government departments and various services, interest payments on debt incurred by the government, and grants given to state governments and other parties (even though some of the grants may be meant for creation of assets).… …The fiscal deficit will have to be financed through borrowing. Thus, it indicates the total borrowing requirements of the government from all sources.…” |