With reference to the classification of public receipts and fiscal accounting under the Union Budget of India, consider the following statements:
1. Capital receipts comprise both debt-creating receipts, such as market borrowings, and non-debt receipts, such as recovery of loans and disinvestment proceeds.
2. Receipts from National Small Savings Fund (NSSF) collections invested in central government securities are accounted for under the Revenue Receipts of the Union Budget.
3. Tax devolution to state governments out of the Gross Tax Revenue is deducted to determine the Net Tax Revenue of the Central Government.
Which of the statements given above are correct?
- 1 and 3 onlyCevap
- B1 and 2 only
- C2 and 3 only
- D1, 2 and 3
Cevap
Statements 1 and 3 are correct. Capital receipts create liabilities or reduce financial assets (comprising market loans, disinvestment, and loan recoveries), and tax devolution to states is deducted from Gross Tax Revenue to calculate Net Tax Revenue to the Centre. Small savings collections (NSSF) create a repayment liability and are categorized under debt capital receipts/public account operations, not revenue receipts.
The correct response includes statements 1 and 3. Capital receipts in the Union Budget consist of debt-creating items (like treasury bills and market loans) and non-debt items (like loan recoveries and disinvestment). Net Tax Revenue of the Central Government is computed after deducting the mandatory tax devolution to states from Gross Tax Revenue. Meanwhile, collections under the National Small Savings Fund create debt liabilities and are accounted for under capital receipts/public account liabilities, making statement 2 false.
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Anahtar Kavram
Classification of Union Budget Receipts and Tax Devolution