Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Disinvestment by the government is an example of:

Options:

Capital receipt

Revenue receipt

Capital expenditure

Revenue expenditure

Correct Answer:

Capital receipt

Explanation:

The correct answer is Option (1) → Capital receipt

Disinvestment refers to the sale of government-owned assets or shares in public sector enterprises. The funds received from such sales are classified as capital receipts because they represent a one-time inflow of money, which contributes to reducing the government’s stake in those assets.