Match List-I with List-II.
| List-I | List-II |
| (A) Non-tax Revenue receipts | (I) Capital Receipts |
| (B) Interest payments on debt | (II) Revenue Expenditure |
| (C) Recovery of loans | (III) Capital Expenditure |
| (D) Investment in shares by government | (IV) Dividends and profits of government |
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 2
The correct answer is option (2) : (A)-(IV), (B)-(II), (C)-(I), (D)-(III)
The correct match is :
(A) Non-tax Revenue receipts : (IV) Dividends and profits of government
(B) Interest payments on debt : (II) Revenue Expenditure
(C) Recovery of loans : (I) Capital Receipts
(D) Investment in shares by government : (III) Capital Expenditure
Non-tax Revenue receipts (A): These are income sources for the government that are not taxes. Dividends and profits from government-owned companies fall under this category.
Interest payments on debt (B): This is an expense incurred by the government for borrowing money. It's a revenue expenditure, which refers to the day-to-day running expenses of the government.
Recovery of loans (C): When the government recovers loans it has given out, it receives capital back. This is classified as a capital receipt.
Investment in shares by government (D): When the government invests in shares of companies, it's spending capital on assets. This is considered capital expenditure.