Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Which of the following sources of receipts increases the burden on the government?

Options:

Indirect taxes

Borrowings

Recovery of loans

Profits from PSU

Correct Answer:

Borrowings

Explanation:

As, borrowings is a "Capital receipt", it will increase the liability of the government, resulting in increased burden.