Define or Explain. 4. Recovery of Debt

Define or Explain.
4. Recovery of Debt

Answer: 

4. Recovery of debt implies taking back the money lent by the government to others (state governments, union territories, public sector undertakings etc.). It is a part of the capital receipts of the government budget. The government can use the recovered debt to purchase assets, leading to an increase in the assets of the government.

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