Question

Which of the following is not a revenue receipt?

• A. Recovery of loans
• B. Fees and fines
• C. Collection of taxes
• D. Foreign grants

Hint:

Revenue receipts are income generated through regular government activities such as taxes, fines, and grants, while capital receipts involve loans and borrowings.

Answer 1

The Correct Option is A

Step 1: Understanding Revenue Receipts:
Revenue receipts refer to the receipts of the government that do not create a liability. They include all income from taxes, fines, fees, etc. They are received on a regular basis and do not require repayment. Step 2: Analyzing the Options:
- Option (A): Recovery of loans is not a revenue receipt. It is a capital receipt because it involves the repayment of loans previously given.
- Option (B): Fees and fines are revenue receipts as they are income generated from penalties and charges.
- Option (C): Collection of taxes is a revenue receipt because it is an income source for the government.
- Option (D): Foreign grants are revenue receipts as they are financial aids received by the government. Step 3: Conclusion:
The correct answer is option (A), as recovery of loans is a capital receipt, not a revenue receipt.