Interest Payment on debt incurred incomes by the government is

Revenue Expenditure

The correct answer is option (3) : Revenue Expenditure

Interest payments on government debt fall under the category of Revenue Expenditure, as they are regular expenses related to servicing the debt and are essential for the government's financial stability and credibility.

Let's elaborate on the other options :

1. Revenue Receipts: Revenue receipts are the income or revenue generated by the government through various sources such as taxes, fines, fees, and grants. These receipts are considered a part of the government's revenue and do not include the repayment of loans or borrowed funds. Interest payments on debt are not revenue receipts; they are expenses for the government.

2. Capital Receipts: Capital receipts are funds raised by the government through the sale of assets, borrowings, or other capital transactions. Interest payments on debt are not capital receipts; they are expenses that result from previous capital transactions, like borrowing.

4 Capital Expenditure: Capital expenditure is the government's spending on acquiring or creating assets that have long-term benefits, such as building infrastructure or purchasing machinery. Interest payments on debt are not considered capital expenditure because they do not result in the acquisition of new assets; instead, they represent a cost incurred for past.