Debt creating capital receipts in the Union budget refer to the sources of funds through which the government raises capital by borrowing. These receipts are used to finance the capital expenditure of the government, such as infrastructure development, investment in public sector enterprises, and other long-term projects. The correct answer, option 'C', includes market borrowing made by the government.

Here is a detailed explanation of each option:

a) PSU disinvestment:
Disinvestment refers to the sale of government-owned shares in public sector undertakings (PSUs) to private entities or the public. While disinvestment generates revenue for the government, it is not considered a debt-creating capital receipt because it involves the sale of assets rather than borrowing.

b) Recovery of loans:
Recovery of loans refers to the repayment of loans previously advanced by the government to various entities, including state governments, public sector enterprises, or other borrowers. Although the recovery of loans contributes to the government's revenue, it is not considered a debt-creating capital receipt as it involves the return of borrowed funds.

c) Market borrowing made by the government:
Market borrowing is the primary source of debt creating capital receipts in the Union budget. It involves the government issuing bonds or securities in the open market to raise funds. These bonds are purchased by individuals, financial institutions, and other investors. By borrowing from the market, the government raises capital to finance its expenditure, with the promise to repay the borrowed amount along with interest at a future date. This increases the government's debt liabilities.

d) Loans advanced by the Central government to Union territory government:
Loans advanced by the Central government to Union territory governments do not fall under the category of debt-creating capital receipts. They represent inter-governmental transfers and are considered as revenue receipts for the Union territory government. These loans do not involve borrowing from external sources or the market.

In conclusion, debt creating capital receipts of the Union budget include market borrowing made by the government. This is the primary source through which the government raises funds for capital expenditure by issuing bonds or securities in the open market. PSU disinvestment and recovery of loans are not considered as debt-creating capital receipts, while loans advanced by the Central government to Union territory government are treated as revenue receipts.