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(i) From the information given in the diagram, categorize the items into revenue receipts and capital receipts, stating valid reasons. WHERE INDIA GETS ITS MONEY FROM? For every Rs. 1 that the Govt. earns — Corporation tax 21 paise; Borrowings and other liabilities 20 paise; Customs 4 paise; Recovery of loan 3 paise; Non-tax revenue 9 paise; GST and other taxes 19 paise; Income tax 16 paise; Excise duties : 8 paise (ii) Distinguish between Revenue deficit and Fiscal deficit. (i) From the following data, calculate the primary deficit. (ii) Elaborate 'Economic stability' function of the Government Budget.
(i) From the information given in the diagram, categorize the items into revenue receipts and capital receipts, stating valid reasons. WHERE INDIA GETS ITS MONEY FROM? For every Rs. 1 that the Govt. earns (ii) Distinguish between Revenue deficit and Fiscal deficit. (i) From the following data, calculate the primary deficit. (ii) Elaborate 'Economic stability' function of the Government Budget.
“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)
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 :
With suitable examples, distinguish between Direct taxes and Indirect taxes.
"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)
(i) Two friends, Deepak and Krish were discussing the impact of increase in GST rates on luxury items, as recently undertaken by the Government. Krish was of the view that most of the luxury items (like foreign travel, imported cigarettes, etc.) should be taxed exorbitantly, while the items related to daily consumption of poor and middle class should be tax-free. Identify and explain the objective of the Government budget Krish is suggesting. (ii) State any two examples of non-tax receipts of the Government. (i) "In the recent times, the Government of India has incurred a lot of expenditure on acquisition of indigenous defence items under 'Make-in-India' programme." Identify and discuss the two types of budget expenditures which may by undertaken by the Government as suggested in the above statement. (ii) State the meaning of 'fiscal deficit' under the Government Budget.
(i) "In the recent times, the Government of India has incurred a lot of expenditure on acquisition of indigenous defence items under 'Make-in-India' programme." Identify and discuss the two types of budget expenditures which may by undertaken by the Government as suggested in the above statement. (ii) State any two examples of revenue expenditure of the Government. (i) Two friends, Deepak and Krish were discussing the impact of increase in GST rates on luxury items, as recently undertaken by the Government. Krish was of the view that most of the luxury items (like foreign travel, imported cigarettes, etc.) should be taxed exorbitantly, while the items related to daily consumption of poor and middle class should be tax-free. Identify and explain the objective of the Government budget Krish is suggesting. (ii) State the meaning of 'primary deficit' in the government budget.
(i) "Government provides essential items like food grains almost free to the families below poverty line." Identify and explain the objective of the government budget indicated. (ii) Define the following : (1) Revenue deficit (2) Primary deficit State whether the following statements are true or false, with valid reasons : (i) High tax on higher income groups aims to achieve the 'reallocation of resources' objective of the Government. (ii) Borrowings are a revenue receipt of the government. (iii) Fiscal deficit always leads to inflation.
Study the given picture carefully : Sources of State and Local government tax revenues for a financial year (pie chart) Answer the following questions based on common knowledge and picture : (a) Categorise the given items in the picture into tax /non-tax receipts. (b) "Government has started spending more on providing free services like education and health to the poor." In the light of above statement, explain how the government can use the budgetary policy in reducing 'inequalities of income'.
Study the given picture carefully : Sources of State and Local government tax revenues for a financial year (original is a pie chart; all its labels and percentages are reproduced in the table above) Answer the following questions based on common knowledge and picture : (a) Categorise the given items in the picture into tax /non-tax receipts. (b) “Government has started spending more on providing free services like education and health to the poor.” In the light of above statement, explain how the government can use the budgetary policy in reducing 'inequalities of income'.
Study the given picture carefully : Sources of State and Local government tax revenues for a financial year Answer the following questions based on common knowledge and picture : (a) Categorise the given items in the picture into tax /non-tax receipts. (b) "Government has started spending more on providing free services like education and health to the poor." In the light of above statement, explain how the government can use the budgetary policy in reducing 'inequalities of income'.
Classify the following as Revenue receipts or Capital receipts. Give valid arguments in support of your answer : (i) Interest received on loan. (ii) Disinvestment receipts from the sale of a government company. (iii) Financial assistance by the Government of USA for promoting girl education in India. (i) Study the following chart carefully and analyse the changing trends in the government expenditure on : (I) Transport (II) Rural Development TREND OF MAJOR ITEMS OF EXPENDITURE (in Rs. lakh crore) (ii) Distinguish between ‘fiscal deficit’ and ‘revenue deficit’.
(i) Study the following chart carefully and analyse the changing trends in the government expenditure on : (I) Agriculture and Allied Activities (II) Transport TREND OF MAJOR ITEMS OF EXPENDITURE (in Rs. lakh crore) (ii) Distinguish between 'Revenue deficit' and 'Primary deficit'. Classify the following as Revenue receipts or Capital receipts. Give valid arguments in support of your answer : (i) Interest received on loan. (ii) Disinvestment receipts from the sale of a government company. (iii) Financial assistance by the Government of USA for promoting girl education in India.
Classify the following as Revenue receipts or Capital receipts. Give valid arguments in support of your answer : (i) Interest received on loan. (ii) Disinvestment receipts from the sale of a government company. (iii) Financial assistance by the Government of USA for promoting girl education in India. (i) Study the following chart carefully and analyse the changing trends in the government expenditure on : (I) Urban Development (II) Rural Development TREND OF MAJOR ITEMS OF EXPENDITURE (in Rs. lakh crore) (ii) Distinguish between 'Fiscal deficit' and 'Primary deficit'.
(i) Distinguish between direct tax and indirect tax with the help of suitable examples. (ii) Explain the 'redistribution of income' objective of the Government Budget. (i) Suppose the following data is presented for an imaginary economy : Calculate Revenue Deficit and Fiscal Deficit. (ii) Differentiate between public provision and public production.
(i) Distinguish between direct tax and indirect tax with the help of examples. (ii) Explain the 'reallocation of resources' objective of Government Budget. (i) Suppose the following data is presented for an imaginary economy : Calculate Revenue Deficit and Fiscal Deficit. (ii) Differentiate between public provision and public production.
(i) Distinguish between direct tax and indirect tax with the help of suitable examples. (ii) Explain the 'reallocation of resources' objective of Government Budget. (i) Suppose the following data is presented for an imaginary economy : Calculate Revenue Deficit and Fiscal Deficit. (ii) Differentiate between public provision and public production.
(a) On the basis of the given information, calculate the values of the following : (i) Fiscal Deficit (ii) Primary Deficit (b) State any two examples of private goods. (c) Distinguish between public provision and public production.
(a) On the basis of the given information, calculate the values of the following : (i) Fiscal Deficit (ii) Primary Deficit (b) State any two examples of public goods. (c) Distinguish between 'Public Provision' and 'Public Production'.
With valid reasons, classify the following into Capital receipts or Revenue receipts of the government : (i) Dividend received by the government from a Maharatan company. (ii) Receipts of the government from sale of shares of a Public Sector Undertaking (PSU) in open market. (iii) Debt cleared by Sri Lanka Government to the Indian Government. (i) 'Government Budget can be a useful instrument in reducing inequalities in the distribution of income and wealth in an economy.' Do you agree with the given statement ? Present valid arguments in favour of your answer. (ii) State the meaning and formula of Fiscal deficit.
(i) 'Government Budget can be a useful instrument in reducing inequalities in the distribution of income and wealth in an economy.' Do you agree with the given statement ? Present valid arguments in favour of your answer. (ii) State the meaning and formula of Primary deficit. With valid reasons, classify the following into Capital receipts or Revenue receipts of the government : (i) Dividend received by the government from a Maharatan company. (ii) Receipts of the government from sale of shares of a Public Sector Undertaking (PSU) in open market. (iii) Debt cleared by Sri Lanka Government to the Indian Government.
(i) State the meaning & formula of Primary deficit. (ii) 'Government Budget can be a useful instrument in reducing inequalities in the distribution of income & wealth in an economy.' Do you agree with the given statement ? Present valid arguments in favour of your answer. With valid reasons, classify the following into Capital receipts or Revenue receipts of the government : (i) Loan taken by the government from Reserve Bank of India (RBI). (ii) Receipts of the government from sale of shares of a Public Sector Undertaking (PSU) in open market. (iii) Debt cleared by Sri Lanka Government to the Indian Government.
(i) Distinguish between Revenue Expenditure and Capital Expenditure of a government, with suitable example. (ii) "Under the 'Production Linked Incentive' scheme, the Government of India offers various benefits like reduced import-export duties, incentives to investors, tax-rebates etc." In the light of above statement, identify and explain the Budget objective and its likely consequences. (i) "Under 'Zero Defect, Zero Effect' (ZED) scheme, the government of India provides up to 80% subsidy to Mini, Small and Medium Enterprises (MSMEs)." Identify and explain the objective of government budget, highlighted in the above text. (ii) Distinguish between Direct tax and Indirect tax with suitable examples.
(i) Distinguish between Revenue Receipts and Capital Receipts of the government, with suitable example. (ii) "Under the 'Production Linked Incentive' scheme, the Government of India offers various benefits like reduced import-export duties, incentives to investors, tax-rebates etc." In the light of above statement, identify and explain the Budget objective and its likely consequences. (i) "Under 'Zero Defect Zero Effect' (ZED) scheme, the government of India provides up to 80% subsidy to Micro, Small and Medium Enterprises (MSMEs)." Identify and explain the objective of government budget, highlighted in the above text. (ii) Distinguish between Tax Revenue and Non-tax Revenue, with suitable examples.
(i) With suitable examples Distinguish between Direct tax and Indirect tax. (ii) Responding to the Prime Minister's 'Give it up campaign' a large number of Indian families have voluntarily surrendered their cooking gas subsidy. Identify and explain the objective behind this action taken by the Government of India. (i) Distinguish between Revenue Receipts and Capital Receipts of the government, with suitable example. (ii) "Under 'Zero Defect, Zero Effect' (ZED) scheme, the Government of India provides up to 80% subsidy to Micro, Small and Medium Enterprises (MSMEs)." Identify and explain the objective of government budget, highlighted in the above text.
Read the following statements : Assertion (A) and Reason (R). Choose the correct option from those given below : Assertion (A) : Public goods are those goods that are collectively consumed by the public. Reason (R) : Public goods are excludable and rivalrous in nature.
From the set of terms given in Column-I and Column-II, choose the correct pair :
"Under the Ayushmaan Bharat Scheme, the government provides free medical treatment to the poorer section of the society." Identify and explain the nature of budget expenditure and its objective, indicated in the given statement.
"A significant proportion of subsidies on fertilizer was a key component of the fiscal statement of the Central Government for year 2023-24." Identify the nature of government expenditure and its objective.
"In the recent Budget the Government allocated funds for construction of new metro lines in smart cities to improve public transportation and reduce pollution." Identify the nature of government expenditure & its objective.
Identify, which of the following is not to be considered while estimating Revenue Deficit of a country. (Choose the correct option)
Read the following statements : Assertion (A) and Reason (R). Choose one of the correct options given below : Assertion (A) : In case of public goods no one can be excluded from enjoying the benefits. Reason (R) : Public goods are non-rivalrous and non-excludable in nature.
The budget under, which the government may spend an amount equal to the revenue it collects is referred as _____ Budget. (Choose the correct option to fill up the blank)
"The government generally levies higher Goods and Services Tax (GST) on socially undesirable products like cigarettes, tobacco, liquor etc." Identify and explain the indicated government budget objective in the above statement. Two friends Ramesh (a software engineer) and Pihu (a bakery owner) are discussing their contribution to the nation's economy through tax payments. Ramesh earns Rs. 8,00,000 per year, which makes him liable to pay income tax. Pihu pays Goods and Service Tax (GST) on the sale of cakes and pastries. On the basis of the given text, identify whether Ramesh is paying a direct tax or an indirect tax. Explain valid differences between two types of taxes.
The budget under, which the government may spend an amount equal to the revenue it collects is referred as ____ Budget. (Choose the correct option to fill up the blank)
Read the following statements carefully : Statement 1 : Public goods are those goods for which the payments are made by all the entities in the country. Statement 2 : Private goods are those goods which are provided by the government of a country at subsidised rates. In the light of the given statements, choose the correct option from the following :
Read the following statements - Assertion (A) and Reason (R). Choose the correct alternative from the options given below : Assertion (A) : Direct taxes are imposed on income/profits of individuals/companies. Reason (R) : The burden of payment of direct taxes cannot be shifted to any other entity.
The main objective of measuring the primary deficit is to highlight present ______________. (Choose the correct option to fill in the blank)
"Taxation is an effective tool to reduce the inequalities of income." Justify the given statement with valid reasons.
Identify, which of the following does not represent a public good. (Choose the correct option)
According to the data presented in the Union Budget 2023 - 24, the total receipts of the government (other than borrowings), and the total expenditure are estimated as Rs. 20 lakh crore and Rs. 45 lakh crore respectively. Therefore, the value of ________ deficit would be Rs. 25 lakh crore. (Choose the correct option to fill in the blank)
Read the following statements carefully : Statement 1 : Foreign aids are the capital receipts for the government. Statement 2 : Disinvestments may lead to a decrease in the assets of the government. In the light of the given statements, choose the correct option from the following :
"As per the Economic Survey of India 2022 - 23, due to the outbreak of geopolitical conflict, the result was higher international prices for fertilizer and fuel. Thus, there was a higher fuel and fertilizer subsidy requirement for supporting the people." On the basis of given text, identify and explain the indicated objective of the government budget.
Read the following text carefully : Government provides certain goods and services which cannot be provided by the market mechanism. Examples of such goods are national defence, roads, government administration etc. which are referred to as public goods. There are two major differences between public and private goods. One, the benefits of public goods are available to all and are not only restricted to one particular consumer. For example, if a person wears a shirt, it will not be available to others. It is said that this person's consumption stands in rival relationship to the consumption of others. However, if we consider a public park or measures to reduce air pollution, the benefits will be available to all. One person's consumption of a good does not reduce the amount available for consumption for others and so several people can enjoy the benefits, that is, the consumption of many people is not 'rivalrous'. Two, in case of private goods, anyone who does not pay for the goods can be excluded from enjoying its benefits. If you do not buy a ticket, you will not be allowed to watch a movie at a local cinema hall. However, in case of public goods, there is no feasible way of excluding anyone from enjoying the benefits of the good. That is why public goods are called non-excludable. Even if some users do not pay, it is difficult and sometimes impossible to collect fees for the public good. These non-paying users are known as 'free-riders'. Consumers will not voluntarily pay for what they can get for free and for which there is no exclusive title to the property being enjoyed. The link between the producer and consumer which occurs through the payment process is broken and the government must step in to provide for such goods. On the basis of the given text and common understanding, answer the following questions : (a) Describe how the Government's role in providing public goods impacts community welfare. (b) Define free-riders. Explain the challenges posed by the free-riders in the context of public goods.
Read the following text carefully : The Union Budget 2025-26 introduces a series of measures aimed at strengthening the Micro, Small and Medium Enterprises (MSME) sector. It recognises the role of MSMEs as one of the key engines in India's journey of development, along with agriculture, investment and exports. As a vital contributor to India's industrial landscape, the MSME sector plays a crucial role in manufacturing sector, exports and employment generation. The new budgetary provisions aim to build on this strong foundation by fostering innovation, enhancing competitiveness and ensuring better access to resources. Furthermore, the Government's ongoing initiatives like Udyam registration portal, PM Vishwakarma, PMEGP, SFURTI, and the Public Procurement Policy continue to demonstrate a combined effort towards integrating and empowering MSMEs. On the basis of given text and common understanding, answer the following questions : (a) "MSMEs play a pivotal role in the India's journey of development Do you agree with the given statement ?" Give valid reason in support of your answer. (b) Explain key measures initiated by the Government for strengthening MSMEs.
Expenditure incurred by the Government of India on the construction of 8-lanes Delhi-Mumbai Expressway can be classified as _________ expenditure of the government, as it may lead to __________ in the value of assets. (Choose the correct alternative to fill in the blanks)
Identify, which of the following is not to be considered while estimating the revenue deficit of an economy. (Choose the correct alternative)
The budget in which government's total planned spending is equal to total planned revenue is referred to as __________ budget. (Choose the correct alternative to fill in the blank)
(i) Define 'tax'. (ii) On the basis of the given image, identify and categorize two items into direct and indirect taxes. Gross Tax Revenue (FY23 BE) (pie chart) ``The government through its budgetary policy may intervene to expand or reduce demand in an economy.'' In the light of the given statement, discuss briefly the budgetary objectives the government is trying to achieve.
(i) Define `tax'. (ii) On the basis of the given image, identify and categorize two items into direct and indirect taxes. ``The government through its budgetary policy may intervene to expand or reduce demand in an economy.'' In the light of the given statement, discuss briefly the budgetary objectives the government is trying to achieve.
Refer the given text carefully : According to the Economic Survey 2024-25, the government budget's projections for the fiscal year 2025-26 indicate that gross direct tax revenue will rise by 12.7%, while gross indirect tax collections are expected to grow by 8.3% relative to FY 2024-25. Direct taxes include income tax and corporate tax, reflecting earnings and profits of households and firms. It plays a key role in revenue growth of the government. Indirect taxes encompass Goods and Services Tax (GST), custom duties and other transaction-based levies. Higher growth rate projected for direct taxes suggests a push to enhance tax buoyancy through improved compliance and reforms. On the other hand, indirect taxes are expected to benefit from consumption trends and Goods and Services Tax (GST) administration improvements. The balance tax strategy aims to mobilise resources while supporting fiscal consolidation and sustainable economic growth. On the basis of the above passage and common understanding, answer the following questions : (i) Differentiate between the two types of taxes indicated in the above text, with suitable examples. 4 (ii) Elaborate the likely consequences of the tax projections made by the government. 2
Refer the given text carefully : According to the Economic Survey 2024-25, the government budget's projections for the fiscal year 2025-26 indicate that gross direct tax revenue will rise by 12.7%, while gross indirect tax collections are expected to grow by 8.3% relative to FY 2024-25. Direct taxes include income tax and corporate tax, reflecting earnings and profits of households and firms. It plays a key role in revenue growth of the government. Indirect taxes encompass Goods and Services Tax (GST), custom duties and other transaction-based levies. Higher growth rate projected for direct taxes suggests a push to enhance tax buoyancy through improved compliance and reforms. On the other hand, indirect taxes are expected to benefit from consumption trends and Goods and Services Tax (GST) administration improvements. The balance tax strategy aims to mobilise resources while supporting fiscal consolidation and sustainable economic growth. On the basis of the above passage and common understanding, answer the following questions : (i) Differentiate between the two types of taxes indicated in the above text, with suitable examples. (ii) Elaborate the likely consequences of the tax projections made by the government.
Read the following text carefully : The government has allocated Rs. 15.27 lakh crore for major sectors, ranging from defence to rural development to social welfare to commerce and so on. Government expenditure goes to paying states' share of taxes and duties. Around 19% is spent on interest payments and 16% on central sector schemes, with subsidies, pension and other payments contributing 19%. Government revenue is divided between borrowings and other liabilities, which account for massive 27% of the incoming cash, Income tax revenue of around 19% Goods and Services Taxes (GST) and other taxes of around 18%; Corporation taxes account for around 17%. The next highest provision on this list is Rs. 2.66 lakh crore for rural development. This will include expenditure on rural infrastructure project and increased outlay for the popular MGNREGA scheme. On the basis of given text and common understanding, answer the following questions : (i) Identify the major sources of government revenue and state what percentage does each one of them contribute. (ii) Discuss the need to allocate funds among different sectors of the economy.
Read the following statements : Assertion (A) and Reason (R). Choose the correct option from those given below : Assertion (A) : Borrowing requirements of the government include interest obligations on debt as well. Reason (R) : The goal of measuring primary deficit is to correct the prevailing fiscal imbalances.
"Consumption of a good by a person does not reduce the amount available for consumption by others. Consumers consuming such goods are known as free-riders." Identify the type of goods indicated in the above text.
Distinguish between Revenue Expenditure and Capital Expenditure with the help of suitable examples. Using suitable examples, distinguish between Revenue Receipts and Capital Receipts.
(i) "The Credit Linked Subsidy Scheme (CLSS) is a key component of the Pradhan Mantri Awas Yojana (PMAY), aimed at providing affordable housing for the Economically Weaker Sections (EWS), Lower-income Groups (LIG), and Middle-income Groups (MIG) in India." Identify and explain the government budget objective highlighted in the above statement. (ii) Differentiate between the two types of tax revenue sources of the government. (i) Medha, an economics student, was studying about the expenditure on defence incurred by the government in the form of acquiring new platforms (jets, submarines etc.), and salaries and pensions of armed forces personnel. She classified both the expenditures as capital expenditure. Do you agree with Medha's views ? Give valid explanation in support of your answer. (ii) If, for an economy, Primary Deficit is Rs. 1,000 crore and interest payments are 20% of total borrowings of the government, then calculate the value of fiscal deficit.
Read the following passage carefully : According to the Economic Survey 2024 - 25, the government's budget projections for the fiscal year 2025 - 26 indicate that gross direct tax revenue will rise by 12.7%, while gross indirect tax collections are expected to grow by 8.3% relative to FY 2024 - 25. Direct taxes include income tax and corporate tax, reflecting earnings and profits of households and firms. It plays a key role in revenue growth of the government. Indirect taxes encompass Goods and Service Tax (GST), custom duties and other transaction-based levies. Higher growth rate projected for direct taxes suggests a push to enhance tax buoyancy through improved compliance and reforms. On the other hand, indirect taxes are expected to benefit from consumption trends and Goods and Services Tax (GST) administration improvements. The balance tax strategy aims to mobilise resources while supporting fiscal consolidation and sustainable economic growth. On the basis of the above passage and common understanding, answer the following questions : (i) Differentiate between the two types of taxes indicated in the above text, with suitable examples. (ii) Elaborate the likely consequences of the tax projections made by the government.
From the set of terms given in Column-I and Column-II, choose the correct pair : Column-I | Column-II (a) Non-tax Revenue | (i) Goods and Services Tax (b) Indirect Tax | (ii) Free-rider (c) Capital expenditure | (iii) Borrowings (d) Private goods | (iv) Rivalrous in nature
On the basis of the given text and common understanding, answer the following questions : (a) Describe how the Government's role in providing public goods impacts community welfare. (b) Define free-riders. Explain the challenges posed by the free-riders in the context of public goods.
On the basis of given text and common understanding, answer the following questions : (a) "MSMEs play a pivotal role in the India's journey of development Do you agree with the given statement ?" Give valid reason in support of your answer. (b) Explain key measures initiated by the Government for strengthening MSMEs.
On the basis of given text and common understanding, answer the following questions : (i) Identify the major sources of government revenue and state what percentage does each one of them contribute. (ii) Discuss the need to allocate funds among different sectors of the economy.
On the basis of the above passage and common understanding, answer the following questions : (i) Differentiate between the two types of taxes indicated in the above text, with suitable examples. (ii) Elaborate the likely consequences of the tax projections made by the government.