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Receipts budget

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	A Receipts Budget is one the most important documents in a Union Budget. It is an extensive list of income generated from different sources by the government in a given financial year. It showcases the break-up of revenue generated under different heads.<br />
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	Part of the Annual Financial Statement of the government, the receipt has details of tax revenue, non-tax revenue, and capital receipts. It also contains information and analysis of tax and non-tax receipts, along with the fiscal trends of the year.<br />
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	The Receipt Budget shows the revenue and capital receipts under four time-periods:<br />
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	* Actual of the previous-to-previous year<br />
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	* Budget estimates for the current year<br />
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	* Revised estimates for the current year<br />
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	* Budget estimates for the next year<br />
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	Budget Receipts are classified under two heads:<br />
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	<strong>Revenue Receipts:</strong> Revenue receipts refer to those receipts which neither create any liability nor cause any reduction in the assets of the government. They are regular and recurring in nature. Any amount borrowed by the government is not a revenue receipt as it causes an increase in liabilities in terms of repayment of borrowings. Two sources that form revenue receipts include tax revenue and non-tax revenue.<br />
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	The Budget estimates of the government&#39;s revenue receipts for the year 2020-21 added to Rs 20,20,926 crore. The revised estimates of revenue receipts for the 2019-20 Budget came at Rs 18,50,101 crore, while the actuals for the 2018-19 Budget stood at Rs 15,52,916 crore.<br />
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	<strong>Capital Receipts:</strong> This receipt contains statements of the various assets and liabilities of the government. Such statements are prepared based on the inputs received from various ministries and departments. Capital receipts include non-debt receipts and debt-receipts. Non-debt receipts are those capital receipts that do not lead to debt, such as divestments in public-sector companies, recovery of loans, etc.<br />
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	The Budget estimates of the government&#39;s capital receipts for the year 2020-21 added to Rs 10,74,306 crore. The revised estimates of capital receipts for the 2019-20 Budget came at Rs 8,48,450 crore, while the actuals for the 2018-19 Budget stood at Rs 7,63,518 crore.<br />
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	<strong>Read full Receipts Budget documents<br />
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	<a href="https://bsmedia.business-standard.com/_media/bs/data/general-file-upload/2021-02/allrec.pdf" target="_blank">Receipts Budget 2021-2022</a></strong></div>

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What is Receipts budget, Receipts budget Meaning, Receipts budget definition, Budget News

What is Receipts budget?

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	Revenue receipts can be defined as those receipts which neither create any liability nor cause any reduction in the assets of the government. They are regular and recurring in nature and the government receives them in the normal course of activities.</div>
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	Revenue receipts include the proceeds from taxes and other duties levied by the Centre; the interest and dividend it receives on its investments; and the fees and charges the government receives for its services.</div>
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	Simply put, <strong>revenue receipts must satisfy two basic conditions:</strong></div>
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	<strong>No liability:</strong> Revenue receipts do not create any liability for the government. For example, taxes received by the government, unlike borrowings, do not create any liabilities for it.</div>
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	<strong>No asset reduction: </strong>Revenue receipts do not lead to any reduction in the government&rsquo;s assets. So, the government cannot show its earnings from sale of stake in a public-sector undertaking as revenue receipts because the stake sale resulted in reduction of its assets.</div>
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	For the government, there are two sources of revenue receipts &mdash; tax revenues and non-tax revenues.<br />
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	The Budget estimates of the government&#39;s revenue receipts for the year 2020-21 added to Rs 20,20,926 crore. The revised estimates of capital receipts for the 2019-20 Budget came at Rs 18,50,101 crore, while the actuals for the 2018-19 Budget stood at Rs 15,52,916 crore.</div>

Learn what is Revenue Receipts, Revenue Receipts Definition and more Revenue Receipts news here at Business Standard.

What are Revenue Receipts, News, Budget 2020 News, Revenue Receipts Definition

Revenue Receipts

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	The Union Budget, which is presented by the Finance Minister of India, comprises Capital Budget and Revenue Budget. The Capital Budget is further categorised into capital receipts and capital expenditure.</div>
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	<strong>What are Capital Receipts?</strong></div>
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	Capital receipts are receipts that create liabilities or reduce financial assets. They also refer to incoming cash flows. Capital receipts can be both non-debt and debt receipts. Loans from the general public, foreign governments and the Reserve Bank of India (RBI) form a crucial part of capital receipts.<br />
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	The Budget estimate of the government&#39;s capital receipts for the year 2020-21 was Rs 1,074,306 crore. The revised estimates of capital receipts for the 2019-20 Budget came at Rs 772,529 crore, while the actuals for the 2018-19 Budget stood at Rs 763,518 crore.<br />
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	<strong>Understanding capital receipts</strong></div>
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	Capital receipts are loans taken by the government from the public, borrowings from foreign countries and institutes, and borrowings from the RBI. Recovery of loans given by the Centre to states and others is also included in capital receipts. In the balance sheet, capital receipts are mentioned in the liabilities section. The capital receipt has a nature of non-recurrence.</div>
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	All capital receipts are tax-free, unless there is a proviso to tax it. Capital receipts can be both non-debt and debt receipts</div>
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	<strong>Non-debt capital receipts</strong></div>
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	Non-debt receipts are those which do not incur any future repayment burden for the government. Almost 75 per cent of the total budget receipts are non-debt receipts.</div>
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		The Budget estimate of the government&#39;s non-debt capital receipts for the year 2020-21 was Rs 224,967 crore. The revised estimates of non-debt capital receipts for the 2019-20 Budget came at Rs 119,828 crore, while the actuals for the 2018-19 Budget stood at Rs 112,779 crore.</div>
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	<strong>Examples of non-debt capital receipts:</strong> Recovery of loans and advances, disinvestment, issue of bonus shares, etc<br />
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	<strong>Debt capital receipts</strong></div>
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	Debt Receipts have to be repaid by the government. Around 25 per cent of government expenditure is financed through borrowing. A reduction in debt receipt (or borrowing) can be a big leap for the economy&#39;s financial health. Most of the capital receipts of the government are debt receipts<br />
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	The Budget estimates of the government&#39;s debt capital receipts for the year 2020-21 added to Rs 8,49,340 crore. The revised estimates of capital receipts for the 2019-20 Budget came at Rs 7,66,846 crore, while the actuals for the 2018-19 Budget stood at Rs 6,50,739 crore.<br />
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	<strong>Examples of debt capital receipts: </strong>Market loans, issuance of special securities to public-sector banks, issue of securities, short-term borrowings, treasury bills, securities against small savings, state provident funds, relief bonds, saving bonds, gold bonds, external debt, etc, are all example of debt capital receipts.</div>
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