Revenue receipts do not lead to any future repayment obligation or reduction in the government’s assets. They are recurring in nature and are collected regularly by the government. Revenue receipts meet the government’s day-to-day expenses, including running public services, paying salaries, and maintaining infrastructure. Capital receipts are those receipts that create a liability or lead to a reduction in the government’s assets. These are generally non-recurring in nature and include transactions that affect the capital structure of the government, such as borrowing, the sale of assets, or the recovery of loans. Total Central Government Receipts is the sum of both revenue receipts and capital receipts. It represents the total income available to the central government in a fiscal year. This total determines the financial capacity of the government to meet its expenditures, both recurrent (revenue expenditure) and investment-related (capital expenditure). Revenue receipts are recurring and do not affect the government’s liabilities or assets, while capital receipts are non-recurring and either create a liability (such as borrowings) or lead to a reduction in assets (such as disinvestment). Revenue receipts are used for the government’s day-to-day operational expenses, while capital receipts are used for long-term investments and repaying debts. A significant reliance on capital receipts, particularly borrowings, to finance the fiscal deficit can lead to an increase in the government’s debt burden. In contrast, higher revenue receipts can help reduce the fiscal deficit without increasing debt.