What are Capital Receipts?

Capital Receipts are receipts which create a liability or result in a reduction in assets.They are obtained by the government by raising funds through borrowings, recovery of loans and disposing of assets.

The main items of Capital receipts are loans raised by the government from the public through the sale of bonds and securities, borrowings by government from RBI and other financial institutions through the sale of Treasury bills are also included in the capital receipts, loans and aids received from foreign countries and other international organizations like International Monetary Fund (IMF), World Bank, etc, receipts from small saving schemes like the National saving scheme, Provident fund, etc, recoveries of loans granted to state and union territory governments and other parties. So these are the capital income sources of the government.