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Capital Receipts

Receipts Intermediate

पूंजी प्राप्तियां

Definition

Capital receipts are income that either creates a liability or reduces an asset of the government. They include market borrowings, recoveries of loans given to states and PSUs, and disinvestment proceeds. Unlike revenue receipts, capital receipts are generally non-recurring and involve creation of debt.

Formula

Capital Receipts = Market Borrowings + Loan Recoveries + Disinvestment

How Capital Receipts Appears in India's Budget

Capital receipts for 2026-27 are estimated at Rs 18.14 lakh crore, dominated by market borrowings.

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Why Capital Receipts Matters

Understanding capital receipts is essential for anyone following government finances, preparing for competitive exams, or analysing India's economic policy. This concept directly affects how the government allocates resources and plans its fiscal strategy.

In the context of India's Union Budget 2026-27, with a total size of Rs 53.47 lakh crore, terms like capital receipts help citizens and analysts evaluate whether the government is on the right fiscal path. The numbers in the budget are only meaningful when one understands the underlying concepts.

For UPSC aspirants, capital receipts is frequently tested in both Prelims and Mains, particularly in Paper III (Economic Development). For CA and MBA students, this concept appears in public finance and macroeconomics courses.

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