2.2.2. Capital Receipts

All those receipts of the government which create liability or reduce financial assets are termed as capital receipts. The main items of capital receipts are:

♤ loans raised by the government from the public which are called market borrowings,

♤ borrowing by the government from the Reserve Bank and commercial banks and other financial institutions through the sale of treasury bills,

♤ loans received from foreign governments and international organisations,

♤ recoveries of loans granted by the central government,

♤ small savings (Post-Office Savings Accounts, National Savings Certificates, etc),

♤ provident funds, and

♤ net receipts obtained from the sale of shares in Public Sector Undertakings.