- Revenue Receipts:
- Neither create a liability for the government.
- Nor reduce the assets (physical or financial) of the government.
- Non-redeemable (cannot be reclaimed).
- Examples: Tax revenues (direct/indirect), non-tax revenues (interest, dividends, fees).
- Capital Receipts:
- Either create liability for the government.
- Or reduce the assets (physical or financial) of the government.
- Examples: Loans raised (market borrowings, from RBI), foreign loans, recovery of loans, disinvestment proceeds.
| Feature | Revenue Receipts | Capital Receipts |
|---|---|---|
| Impact on Liability | Neither create liability | Either create liability |
| Impact on Assets | Nor reduce assets | Or reduce assets |
| Nature | Non-redeemable | Redeemable (e.g., loans to be repaid) |
| Examples | Taxes, interest, dividends, fees | Borrowings, loan recoveries, disinvestment |