Identify the non-debt creating capital receipt :

Proceeds from sale of PSUs

The correct answer is option (1) : Proceeds from sale of PSUs

A non-debt creating capital receipt refers to a receipt that does not create a liability or debt for the government. Let's analyze each option:

1. Proceeds from sale of PSUs (Public Sector Undertakings): This is a form of disinvestment where the government sells its stake in PSUs to private entities or the public. It is a non-debt creating capital receipt because it does not involve borrowing or creating a liability.

2. Sale of railway tickets: This is a revenue receipt from the sale of services (transportation) provided by the government. It is not a capital receipt and does not fall under the category of non-debt creating capital receipts.

3. Borrowings: Borrowings involve the government borrowing funds from various sources, which creates a liability or debt. Therefore, this is not a non-debt creating capital receipt.

4. Cash grants-in-aid from foreign countries: Grants obtained by the government do not create any liability as it doesn't have to be returned back. Thus, grants form part of the revenue receipt.