What is non debt creating capital inflows?
FDI, FPI and Depository Receipts are non-debt flows. These inflows don’t create any repayment burden. On the other hand, ECBs, FCCBs, Rupee Denominated Bonds, NRI deposits and banking capital are debt creating flows. Governments’ overall strategy is to reduce the debt creating and volatile inflows.
What are the examples of non debt capital receipts?
There are two types of non-debt capital receipts, recoveries of loans and advances, and miscellaneous capital receipts….NON-DEBT CAPITAL RECEIPTS (NDCR)
- Disinvestment receipts.
- Strategic disinvestment.
- Listing of PSUs in stock markets and.
- Issue of bonus shares.
What is debt creating capital receipts?
Examples of debt creating receipts are—Net borrowing by government at home, loans received from foreign governments, borrowing from RBI. Examples of non-debt capital receipts are—Recovery of loans, proceeds from sale of public enterprises (i.e., disinvestment), etc.
Are capital receipts always debt creating?
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.
What are non debt capital receipts Upsc?
Note that non debt capital receipts (NDCR) of the union government include: Recoveries of loans and advances given to state governments, Union territories and foreign governments. Disinvestment proceeds. Money accrued to the Union government from listing of central government companies and issue of bonus shares.
What is capital receipt Upsc?
All the receipts of the government that establish liability or minimise financial assets are known as capital receipts.
What are the examples of capital receipts?
Examples of Capital Receipts
- Cash received from the sale of fixed assets.
- Amount received from Shareholders and debenture holders.
- Borrowings which includes loans, disinvestment, insurance claims etc.
How are capital receipts different from revenue receipts?
The primary difference between Capital Receipts vs Revenue Receipts is that Capital receipts are the receipts of non-recurring nature which either creates the liability of the company or reduces the company’s assets whereas revenue receipts are the receipts of recurring nature and are reported in the statement of …
What are capital receipts distinguish between debt creating and non debt creating capital receipts?
Non-debt creating capital receipts refer to those receipts of the government which lead to a decrease in assets, and not an increase in liabilities. For instance, disinvestment is a non-debt creating capital receipt. Non-debt creating capital receipts give rise to debt.
What are examples of capital receipts?
What is debt and non debt receipts?
The Non-debt receipts comprise of tax and Non-Tax revenue, and Non-debt Capital receipts like recovery of loans and disinvestment receipts. Debt receipts mostly comprise of market borrowings and other liabilities, which the government is obliged to repay in the future.
What is debt and non debt?
Non-debt receipts are the receipts which doesn’t incur any future repayment burden for the government. On the other hand, the debt receipts are those which are to be repaid by the government. Borrowings is the debt receipts.
What are non-debt receipts?
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.
Which of the following is an example of non debt creating capital?
Answer Non-debt creating capital receipts are those money receipts which are received by the government from the sale of old assets. These receipts are not treated as liabilities of the government. Examples of non-debt creating capital receipts are recovery of loans, proceeds from sale of public enterprises, etc.
Are all capital receipts tax-free?
All capital receipts are tax-free, unless there is a proviso to tax it. Capital receipts can be both non-debt and debt receipts 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.
What are the two types of capital receipts?
The Capital receipts are of two types viz. Debt receipt and non-debt receipts. The debt receipts are those which government needs to repay along with interest. Non-debt receipts are those which come to the government by sale of some assets.