Option 1 -> Tax Revenue is a revenue receipt, not a capital receipt, as it does not create liability or reduce assets.
Option 2 -> Recovery of Loans is a capital receipt as it reduces the government's financial assets.
Option 3 -> PSU Disinvestment is a capital receipt as it involves sale of government assets.
Option 4 -> Borrowings create liabilities for the government, making them capital receipts.
Hence, Option 1: Tax Revenue -> Tax Revenue is a revenue receipt because it neither creates any liability for the government nor reduces any asset. Revenue receipts are recurring in nature and do not affect the assets or liabilities of the government. Capital receipts, on the other hand, either create a liability (like borrowings) or reduce an asset (like recovery of loans or disinvestment). Tax revenue is earned regularly through direct and indirect taxes and forms part of the revenue account of the government budget. -> correct