--%>

Why government taken as capital receipt

Why the borrowings by Government are taken as capital receipts?

E

Expert

Verified

Borrowings by Government are capital receipts since they build liabilities or diminish assets. The Government is below obligation to return the amount all along with interest.

   Related Questions in Macroeconomics

  • Q : Explain Tax rate increase. A change in

    A change in tax rate changes the IS equation, LM equation remaining the same. Let same, let us suppose that the government raises the tax rate from 20 percent to 25 percent<

  • Q : Principles of macro economics what are

    what are the four supply factors of economic growth

  • Q : Taxing imports-whats the problem ‘Must

    ‘Must a country which is less proficient at generating all goods use import controls to decrease imports from additional countries?’

  • Q : Value of MPC Why can be value of MPC be

    Why can be value of MPC be not more than one? Answer: The value of MPC will not be more than one since increment in consumption (ΔC) can’t be more than

  • Q : Interest receipt Why is interest

    Why is interest received classified as revenue receipt? Answer: Interest received is a revenue receipt since it does not build any liability nor it leads to the red

  • Q : Supply factors in economic growth

    Briefly explain the four supply factors in economic growth?

  • Q : Microeconomic analysis emphasizing to

    Family member to macroeconomics, the microeconomic analysis: (w) was emphasized through economists prior to the Great Depression. (x) is related with the effects of extensive government policies. (y) focuses upon economic development

  • Q : Principles of macroeconomics Explain

    Explain the concept of “economies of scale” and “increasing returns”.

  • Q : Limitations of using GDP as an index of

    What are the limitations of using GDP as an index of welfare of a country?A) The N.I. figures provide no indication of the population, skill and resource of the country. Thus the levels of welfare stay low.B) A higher N.I. migh

  • Q : Borrowings and recovery of loans

    Categorize the borrowings and recovery of loans into capital and revenue receipts of government budget. Give reason too.