Match List - I with List - II.

Choose the correct answer from the options given below 

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)   

Revenue receipts are those receipts of the government that do not affect the asset and liability status of the government. These are further divided into 2 categories i.e. Tax receipts and Non-tax receipts. Capital receipts are those receipts of the government that reduce the assets and increase the liability of the government. Revenue expenditure includes expenses incurred on regular basis like expenses on the collection of taxes. Capital expenditure results in reduction of liability or increase in assets.

(A) Loans extended by the Indian Government to the Sri Lankan Government  - It increases the assets of the country, thus will be treated as capital expenditure.

(B) Expenditure by the Government on Covid Vaccines - Expenditure done on vaccines is incurred on regular basis and does not affect the assets and liability status of the government,  thus will be treated as revenue expenditure.

(C) Dividend received by the Government on shares bought by it - As there is no change in the assets or liability status of the government, thus will be treated as revenue receipt.

(D) Public Provident Fund held by Public - It increases the liability of the government, thus will be treated as capital receipts.