Government Receipts is a fundamental concept in public finance, representing all money inflows to the government, classified broadly as an accounting concept. These receipts are categorized into two main types: Revenue Receipts and Capital Receipts. Revenue Receipts are recurring inflows that neither create a liability nor reduce the government's assets, such as income tax, dividends from Public Sector Undertakings, and fees. Conversely, Capital Receipts are non-recurring inflows that either create a liability, like market borrowings, or cause a reduction in government assets, such as proceeds from disinvestment or recovery of loans.
The constitutional framework for managing these receipts is established by Article 266(1) of the Constitution of India, which mandates that all revenues, loans raised, and money received in repayment of loans shall form the Consolidated Fund of India. All other public money, such as provident funds, is credited to the Public Account of India under Article 266(2). This structure, a cornerstone of fiscal governance, ensures that no money can be withdrawn from the Consolidated Fund except under appropriation made by law, as per Article 266(3).
The classification of receipts is crucial for the Annual Financial Statement (Budget), as required by Article 112, and is monitored under the Fiscal Responsibility and Budget Management (FRBM) Act, 2003. A significant recent change affecting revenue receipts was the introduction of the Goods and Services Tax (GST), enabled by the 101st Constitution Amendment Act, 2016, which replaced multiple indirect taxes. More recently, the GST 2.0 reforms, effective September 22, 2025, simplified the tax structure by removing the 12% and 28% slabs and introducing a 40% slab for specified demerit goods.