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Capital Budget of Government of India

Assets and liabilities of central government. Changes occurring capital is considered, shows capital requirements of government and pattern of their financing.

Capital Receipts:

Receipts creating liabilities, and reducing financial assets. These are:

  Market Borrowings: Loans raised from public.

  Treasury Bills: Borrowings from RBI and other commercial banks and FIs through treasury bills.

  Loans received from foreign government and international organisation.

  Recoveries of loans granted by central government.

  Small savings in PO savings account, National Saving Certificate, etc.

  Provident Fund

  PSU disinvestment (receipts from sale pf share in Public Sector Undertakings).

Capital Expenditure:

Expense which result in creation of physical or financial asset. Reduction in financial liabilities. They are:

  Expenditure on Land acquisition, building machinery, equipment.

  Investment in shares

  Loans & advances by Central government to states and UTs, PSUs or others.

 

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