Which of the following statements is true?

Statement 1- Revenue receipts do not create a corresponding liability for the government.

Statement 2- Capital receipts do not lead to reduction of assets of the government.

Only statement 1 is true

Revenue receipts are those receipts of the government which do not affect the asset and liability status of the government. Whereas, capital receipts are those receipts of the government which reduce the assets and increase the liability of the government.