Is the following, a revenue receipt or a capital receipt in the context of government budget and why?
(i) tax receipt (ii) Disinvestment
(i) Tax receipt It is a revenue receipt because it does not create a liability for the government or does not lead to reduction in any asset.
(ii) Disinvestment It refers to withdrawal of existing investment, e.g. the Government of India is undertaking disinvestment by selling its shares in the Maruti Udyog. It is a capital receipt of the government, as it reduces assets of the government.