Answer to Question #241048 in Macroeconomics for Akanksha

Question

Which of the following sources of receipts in government budget increases its
liabilities?
(a) Direct taxes
(b)
Indirect taxes
(c)
Disinvestment
(d)
Borrowings
23.
I

Answer 1

(d) Borrowings

Borrowings raise the government's obligations since they are a capital reception, and capital receipts can increase the government's liabilities or reduce its assets.