Exams › SSC CGL (Prelims) › General

Which of the following best defines capital receipts?

1. Receipts that increase government revenue permanently
2. Receipts that reduce financial liabilities of the government
3. Receipts that create liability or reduce government assets
4. Receipts that do not impact government assets or liabilities

Correct answer: Receipts that create liability or reduce government assets

Solution

Capital receipts are those receipts that either create a liability for the government or reduce its assets. Examples include borrowings and recovery of loans. They are different from revenue receipts, which do not create liabilities.

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