Which of the following pairs is correctly matched?

The correct answer is Option (3) → Revenue receipts – non-redeemable

Revenue receipts create no claim on the government. Nothing has to be paid back, so they are called non-redeemable.

Option (1) Capital receipts – receipts that do not lead to a claim on the government — Incorrect. This describes revenue receipts. Capital receipts create liability or reduce assets.

Option (2) Borrowings – non-debt creating capital receipt — Incorrect. Borrowings are debt creating.

Option (3) Revenue receipts – non-redeemable — Correct. They create no claim on the government.

Option (4) Recovery of loans – debt creating capital receipt — Incorrect. Recovery of loans is non-debt creating.