The government budget consists of revenue budget and capital budget. Both the budgets have receipts viz., revenue receipts and capital receipts.

I. Revenue receipts: Revenue receipts are those receipts which do not lead to a claim on the government. 

They include the following: 

1. Tax revenue. 

2. Non-tax revenue. 

1. Tax revenues: These are the important component of revenue receipts. Tax revenue consists of direct tax and indirect taxes. The direct tax includes income tax, corporate tax and indirect tax includes excise duty (tax on production of goods in the country), customs duties (tax on exports and imports) and service tax (GST-goods and services tax has been introduced in place of indirect taxes from 1^st July 2017). Other direct taxes like wealth tax and gift tax have never brought in large amount of revenue and thus they are called as paper taxes. 

2. Non-tax revenue: The non-tax revenue of the central government consists of the following:

• Interest receipts on account of loans by the central government 
• Dividends and profits on investments made by the government 
• Fees and other receipts for services rendered by the government 
• Grants-in-aid from foreign countries and international organizations.

II. Capital receipts: All those receipts of the government which create liability or reduce financial assets are termed as capital receipts. The government receives money by way of loan or from the sale of its assets. Loans have to be repaid to the agencies from whom the government has borrowed. Thus it creates liability. Sale of government assets like sale of shares in public sector undertakings (disinvestment) reduces the total amount of financial assets of the government.

When government takes fresh loans it means that it has to be returned with interest. Similarly, when government sells an asset it means that in future its earnings from that asset will disappear. Thus, these receipts can be debt creating or non-debt creating.