Which of the following is NOT included in capital receipts?

Correct option is B

The correct answer is (b) Taxes.
 Taxes are classified as revenue receipts, not capital receipts.
 Revenue receipts include the income received by the government from its regular sources such as taxes (both direct and indirect), interest, and dividends.
 Capital receipts, on the other hand, include funds that are not part of the regular income of the government and are generally non-recurring. These include borrowings, recovery of loans, and foreign aid.
 Capital receipts either create a liability for the government (like borrowings) or reduce its financial assets (like the recovery of loans).
Information Booster:
Foreign aid:
 Foreign aid refers to financial assistance provided by one country to another. It can be part of capital receipts if it is a grant or loan that needs to be repaid.
Recovery of loans:
 Recovery of loans is considered a capital receipt as it involves the return of capital that was previously lent out by the government.
Borrowings:
 Borrowings are funds raised by the government from various sources, such as issuing bonds, taking loans from international organizations, or domestic borrowing. These are also classified as capital receipts.