Which of the following is a FALSE statement in the context of government budget?

Correct option is B

The correct answer is (b) Fees and fines collected is an example of capital receipt.
· Fees and fines collected are considered revenue receipts, not capital receipts. Revenue receipts are the regular income of the government that does not create any liabilities or reduce assets, and fees and fines fall under this category.
Explanation of Other Options:
· There is no future obligation to return the amount in case of revenue receipts: This is true. Revenue receipts do not create a liability for the government to repay in the future.
· Profit earned through Indian Railways is a part of non-tax revenue: This is true. Non-tax revenue includes the profits and revenues generated by public enterprises like Indian Railways.
· Recovery of a loan is a capital receipt: This is true. Capital receipts include funds that the government receives by recovering loans given to others, which reduces financial assets.