With valid reasons, classify the following into Capital Receipts or Revenue Receipts of the government:
Dividend received by the government from a Maharatna company.
Receipts of the government from the sale of shares of a Public Sector Undertaking (PSU) in the open market.
Debt cleared by the Sri Lanka Government to the Indian Government.
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Solution and Explanation
Dividend: This is a Revenue Receipt as it is a regular income for the government from its investments.
Sale of Shares: This is a Capital Receipt as it involves the sale of government assets.
Debt Repayment: This is a Capital Receipt as it reduces the liabilities of the government.
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