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Which of the following sentence/s is/are NOT correct? i. The detailed estimates of revenue receipts are usually presented in the finance bill. ii. Non-tax revenue of the central government mainly consists of taxes imposed on goods imported into and exported out of India. iii. Revenue receipts are redeemable.
Only i
i and ii
ii and iii
i and iii
ii and iii
Revenue receipts are those receipts which neither create any liability nor cause any reduction in the assets of the government; therefore, they are non-redeemable. Furthermore, taxes on goods imported or exported are classified as customs duties (tax revenue), whereas non-tax revenue includes interest receipts, dividends, and profits from public sector undertakings, and the detailed estimates of revenue are presented in the Annual Financial Statement (Budget) rather than the Finance Bill, which deals specifically with tax proposals.
Revenue receipts are those receipts which neither create any liability nor cause any reduction in the assets of the government; therefore, they are non-redeemable. Furthermore, taxes on goods imported or exported are classified as customs duties (tax revenue), whereas non-tax revenue includes interest receipts, dividends, and profits from public sector undertakings, and the detailed estimates of revenue are presented in the Annual Financial Statement (Budget) rather than the Finance Bill, which deals specifically with tax proposals.
Article 112 of the Indian Constitution mandates the presentation of the Annual Financial Statement, commonly referred to as the Budget.
Revenue receipts comprise tax revenue (direct and indirect taxes) and non-tax revenue (fees, fines, interest, dividends).
Revenue receipts are non-redeemable, meaning the government is not legally obligated to repay these amounts to the sources.
The Finance Bill contains the tax proposals and amendments to existing tax laws for the upcoming financial year.
Non-tax revenue is distinct from tax revenue and represents earnings generated by the government through non-tax means.
Statement i is incorrect because revenue estimates are provided in the Annual Financial Statement (Budget document), not the Finance Bill.
Statement ii is incorrect because taxes on imports/exports (Customs duties) are categorized under Tax Revenue, not Non-tax Revenue.
Statement iii is incorrect because revenue receipts are non-redeemable; capital receipts (like market borrowings) are considered redeemable liabilities.
Budgetary documents are presented by the Finance Minister under Article 112 of the Constitution of India.
C is correct тАФ Statements ii and iii are both incorrect because customs duties are tax revenues and revenue receipts are non-redeemable by nature.
Distinguish between 'Revenue Expenditure' and 'Capital Expenditure' as well, since Revenue Expenditure includes interest payments and salaries, while Capital Expenditure covers infrastructure development and asset creation.
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