The correct answer is Option (2) → Proceeds from disinvestment are recorded under this category.
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(A) It records all the transactions which are recurring in nature. This statement is correct. The revenue budget primarily deals with the government's current income (revenue receipts like taxes) and current expenditures (revenue expenditures like salaries, pensions, subsidies) which are generally recurring in nature.
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(B) Proceeds from disinvestment are recorded under this category. This statement is incorrect. Disinvestment involves the sale of government assets (e.g., shares in Public Sector Undertakings). Proceeds from the sale of assets are classified as capital receipts because they lead to a reduction in the government's assets. Capital receipts are part of the capital budget, not the revenue budget.
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(C) It has two components- revenue receipts and revenue expenditure. This statement is correct. The revenue budget is indeed composed of revenue receipts (income) and revenue expenditure (spending) for the fiscal year.
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(D) Payment of salaries by the government departments is recorded in government budget. This statement is correct. Payment of salaries to government employees is a recurring expense and is classified as revenue expenditure within the revenue budget.
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