FDI: non-debt capital receipt query

[Advik]

Can someone tell me whether FDI is treated as a non-debt capital receipt or not? Please help.

[Hari]

Only four; the rest either create a liability or don't reduce the government's asset class.

[Bhavin]

Items 2 and 3 are debt-creating assets.

[Shankar]

Only one - disinvestment proceeds - and FDI isn't included in the Union Budget. Interest receipts fall under revenue receipts, and Ways and Means Advances are basically loans from the RBI to ease the government's credit crunch. Public-account receipts aren't part of the Union Budget; they're more like provident fund and small-savings collections.

[Shivam]

Just one - disinvestment proceeds.

[Mohit]

I think it's option A.

[Rajat]

Probably only disinvestment. Not FDI, because that falls under the balance of payments.

[Arif]

Disinvestment proceeds are the only non-debt-creating ones among the options.

The Government of India doesn't take FDI, only FPI, since the government can only borrow and can't dilute equity (FDI is equity-based).

Interest receipts are non-tax revenue in the revenue account, not the capital account.

Public-account receipts also aren't non-debt-creating; they're not a claim of the government. The government just acts like a bank and later repays the public.

Ways and Means Advances are a debt-creating short-term liquidity-management tool.

[Jayant]

Mainly disinvestment proceeds and loan recoveries count as non-debt capital receipts.