Consider the following statements:
I. Capital receipts create a liability or cause a reduction in the assets of the Government.
II. Borrowings and disinvestment are capital receipts.
III. Interest received on loans creates a liability of the Government.
Which of the statements given above are correct?

Question

Consider the following statements:

I. Capital receipts create a liability or cause a reduction in the assets of the Government.

II. Borrowings and disinvestment are capital receipts.

III. Interest received on loans creates a liability of the Government.

Which of the statements given above are correct?

Accepted Answer

Answer: I and II only.

Consider the following statements:I. Capital receipts create a liability or cause a reduction in the assets of the Government.II. Borrowings and disinvestment are capital receipts.III. Interest received on loans creates a liability of the Government.Which of the statements given above are correct?