Classify the following statements as revenue receipts or capital receipts. Give valid reasons in support of your answer.

(a) Financial help from a multinational corporation for victims in a flood-affected area.

(b) Sale of shares of a Public Sector Undertaking (PSU) to a private company, Y Ltd.

(c) Dividends paid to the Government by the State Bank of India.

(d) Borrowings from the International Monetary Fund (IMF).

(a) Financial help from a multinational corporation for victims in a flood-affected area.: Revenue receipt. This is because of it neither creates any liability know it creates any reduction in the Assets of the government. It is like a transfer payment.

(b) Sale of shares of a Public Sector Undertaking (PSU) to a private company, Y Ltd.: Capital receipt. It leads to a reduction in the assets of the government.

(c) Dividends paid to the Government by the State Bank of India.: Revenue receipt. This is because of it neither creates any liability nor it creates any reduction in the Assets of the government.

(d) Borrowings from the International Monetary Fund (IMF): Capital receipt. It leads to a reduction in the assets of the government.