The proceeds from disinvestment are included as

Government receipts are classified into revenue and capital receipts. Revenue receipts neither create liabilities nor reduce assets [2]. In contrast, capital receipts are those that either create a liability (like borrowings) or cause a reduction in the government's assets. Disinvestment involves the sale of the government's equity holdings or shares in Public Sector Undertakings (PSUs) to the private sector. Since this process results in a reduction of the government's financial assets, the proceeds are categorized as capital receipts. Specifically, disinvestment proceeds are classified as 'non-debt creating capital receipts' because, unlike market loans, they do not create a future repayment obligation or debt for the government. While dividends from PSUs are considered non-tax revenue receipts, the principal amount generated from selling the asset itself is strictly a capital receipt [4].

Sources

1. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > NON-TAX REVENUE > p. 104
2. [3] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 5: Government Budget and the Economy > 5.2.1 Measures of Government Deficit > p. 72
3. [4] https://cga.gov.in/writereaddata/aag-chap2.htm