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NextQ24

(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.

Measures of Government DeficitStudy Simplify SpecialPYQ6LQ
Question 23

(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.

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