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

Borrowings

The correct answer is Option 2: Borrowings

Among the given options, borrowings are the only source that increases the burden on the government because they create future liabilities and require repayment with interest.

Indirect taxes, recovery of loans, and profits from PSUs provide revenue without adding to the government's debt burden.

Option 1: Indirect taxes are taxes levied on goods and services rather than on income or profits. Examples include GST, excise duty, and customs duty. These taxes are generally passed on to consumers in the form of higher prices. Indirect taxes do not increase the burden on the government because they are a source of revenue without creating a liability. Instead, they can generate steady income for the government.

Option 3: Recovery of loans refers to the repayment of money that the government has previously lent to individuals, businesses, or other governments. Recovery of loans does not increase the burden on the government. Instead, it improves the government's financial position by bringing back funds that were previously disbursed. This recovered money can be used for other expenditures or investments.

Option 4: Public Sector Undertakings (PSUs) are government-owned corporations or businesses. Profits generated by these enterprises are often transferred to the government as dividends or other forms of revenue. Profits from PSUs do not increase the burden on the government. On the contrary, they provide a source of revenue that can be used for public spending without creating additional liabilities.