2002 · Q67
Consider the following statements:
- 1Part 'B' of the Budget speech of the finance minister includes description of the initiatives on economic front to be taken up by the Government for the coming year in addition to direct and indirect tax proposals.
- 2The receipts on account of the partial disinvestment of Central Government's holdings in the equity capital of public sector enterprises are revenue receipts.
Which of these statements is/are correct?
Indian EconomyFiscal policy and budget
- A1 only
- B2 only
- CBoth 1 and 2
- DNeither 1 nor 2
Explanation
Part B of the Budget speech covers the government's economic initiatives for the coming year along with direct and indirect tax proposals — statement 1 is correct. Receipts from disinvestment are capital receipts (they arise from selling assets), not revenue receipts — statement 2 is wrong. Hence only 1 is correct — (A).