Identify the Revenue receipts from the following :
(A) Escheats
(B) Borrowing from International Monetary Fund
(C) Sale of shares in Public Sector Undertakings
(D) Goods and Service Tax
(E) Income Tax
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 3
The correct answer is option (3) : (A), (D), (E) only
Revenue receipts refer to the income or receipts that do not create any liability for the government and are recurring in nature.
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(A) Escheats: Escheats refer to unclaimed financial assets (like bank accounts, insurance policies) that revert to the government. This is a form of revenue receipt.
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(B) Borrowing from International Monetary Fund: Borrowing from international organizations like the IMF constitutes borrowing and not revenue receipt.
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(C) Sale of shares in Public Sector Undertakings: TThis is a one-time sale of assets, reducing the government's ownership. It's also classified as a capital receipt.
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(D) Goods and Service Tax (GST): GST is a consumption-based tax and is a revenue receipt for the government.
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(E) Income Tax: Income tax collected from individuals and businesses is a revenue receipt.