Class 12 Macro Economics: Government Budget and the Economy
Chapter 10: Government Budget and the Economy — understanding the government's annual financial plan covering receipts, expenditure, deficits, and fiscal policy. CBSE Class 12 Macroeconomics notes covering 9 topics: Introduction, Objectives, Structure, Budget Receipts, Budget Expenditure, Categorization Overview, Types of Budgets, Measures of Deficit, and Additional Concepts.
Topics(4)
Meaning and Objectives of Government Budget
Learn the definition of a government budget as an annual statement of estimated receipts and expenditures, and understand the 7 key objectives governments pursue through budgetary policy.
Structure and Types of Budget
Understand the Revenue Budget and Capital Budget split, three types of budgets (balanced, surplus, deficit), progressive/proportional/regressive tax systems, and plan vs non-plan expenditure classification.
Budget Receipts and Expenditure
Learn the classification of government receipts and expenditure into revenue and capital categories, with interactive quizzes and 2024-25 Union Budget pie chart breakdown.
Measures of Government Deficit
Revenue deficit, fiscal deficit and primary deficit with formulas, implications and remedies, and the link between fiscal deficit and borrowing, debt trap and inflation. CBSE Class 12 Macroeconomics notes
Questions by Textbook
Study Simplify Special
Frequently Asked Questions
<p>“In the Annual Budget 2022-23, the Government of India set up disinvestment targets of Rs. 65,000 crore”. Such proceeds from disinvestment can be classified as _____ receipts in the Government Budget as it leads to _____ of the Government. (Choose the correct alternative)</p>
(D) revenue, decrease in liabilities
<p>In order to tackle the problem of rising general price level in an economy, government may come up with a surplus budget to achieve the budget objective of _____. (i) reallocation of resources (ii) price stability (iii) redistribution of income Alternatives :</p>
(D) (i) and (iii)