Match the following.

1-C, 2-A, 3-D, 4-B

1. Purchase of shares by the government - Capital expenditure
2. Increase in the income tax rate - Revenue receipt
3. Unemployment allowance given by the government - Revenue expenditure
4. Disinvestment done by the government - Capital receipt

Revenue receipts are those receipts that do not lead to a claim on the government. They neither create liability nor reduces the assets of the government. Capital receipts refers to those receipts which either result in creation of liability or in reduction of assets. For example: sale of shares of SBI to HDFC bank will result in the reduction of assets of the government. Revenue expenditure are those expenses which neither creates assets nor result in reduction of liability. For example: salaries etc. paid by the government. Capital expenditure are those expenses which either results in the creation of assets or reduction in liability of the government. For example: Payment of loan, Purchase of shares.