The revenue budget consists of revenue receipts of the government and the expenditure met from such revenues. The revenue receipts includes tax revenue and non-tax revenue. Whereas the capital budget consists of capital receipts and capital expenditure of the government. Capital receipts are the receipts of the government which create liability or reduce financial assets. They include market borrowing, foreign debts, repayment of loans and advances. Capital expenditure refers to the expenditure of the government, which leads to creation of assets or reduction in liabilities.