Which of the following is the non-debt creating capital receipt?
I. Recovery of loans
II. Proceeds from the sale of public sector unit
A.Only II
B.Neither I nor II
C.Both I and II✓ Correct
D.Only I
Explanation
Both recovery of loans and proceeds from disinvestment (sale of public sector units) are non-debt creating capital receipts because they do not increase the government's future repayment obligations.
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