Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Which of the following sources of receipts increases the liabilities of the government?

Options:

Indirect taxes

Recovery of loan from Punjab government

Dividends received from the shares of SBI

Borrowings from public

Correct Answer:

Borrowings from public

Explanation:

Borrowing from the public will increase the liability of the government. It is considered as "Capital receipts". Capital receipts are those receipts of the government which reduce the assets and increase the liability of the government.