Option 1 -> Recovery of loans reduces the government's financial assets and does not create any liability, making it a non-debt capital receipt.
Option 2 -> Financial aid is typically treated as a revenue receipt (grant), not a capital receipt.
Option 3 -> Borrowings from IMF create a liability for repayment, making it a debt capital receipt.
Option 4 -> Dividend income is a revenue receipt, not a capital receipt.
Hence, Option 1: Recovery of loans -> Non-debt capital receipts are those capital receipts that do not create a liability for the government. Recovery of loans is a capital receipt because it involves the return of money that was previously lent out (reduction in financial assets). Since it does not create any new liability or obligation for the government, it qualifies as a non-debt capital receipt. The government is simply converting one form of asset (loan receivable) into another (cash). -> correct