Assertion (A): Revenue receipts are termed non-redeemable.
Reason (R): Revenue receipts are divided into tax revenues and non-tax revenues.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Both (A) and (R) are true but (R) is not the correct explanation of (A).
Assertion (A): Revenue receipts are termed non-redeemable. — True. They are never paid back.
Reason (R): Revenue receipts are divided into tax revenues and non-tax revenues. — True. Taxes form one part; interest, dividends, fees and grants form the other.
Why R does not explain A?
R only shows how revenue receipts are grouped. It does not say why they need not be repaid. The real explanation of A: revenue receipts do not lead to a claim on the government, so there is nothing to redeem.
NCERT (2026-27): “5.1.2 Classification of Receipts Revenue Receipts: Revenue receipts are those receipts that do not lead to a claim on the government. They are therefore termed non-redeemable. They are divided into tax and non-tax revenues. …” |