Under the Indian budgetary classification of Central or State governments, which of the following would be classified as revenue receipts?

Correct option is B

In the context of the Indian government's budgetary classification:

• ​Revenue receipts refer to the income that a government receives through regular activities like taxation or grants, which do not result in the creation of liabilities or reduction of assets.
  
• Tax receipts fall under revenue receipts, as they are the government's regular income from taxes such as income tax, GST, excise duty, etc

Other options:

• Borrowings: These are classified as capital receipts because they create liabilities.
  
• Receipts from disinvestment: These are capital receipts because they involve the sale of government assets.
  
• Recoveries of loans: These are also capital receipts as they reflect the return of loans and not regular income.

Information Booster

• Revenue Receipts: These receipts do not affect the government's assets or liabilities and are used for day-to-day expenditure.
  
• Capital Receipts: These are one-time receipts that affect the government's liabilities or assets, such as loans and disinvestment proceeds.