Ans. Prepared by teachers of one of the best CBSE schools in Delhi. expenditure on old age pensions, salaries, etc. service tax, entertainment tax, etc. State three sources each of revenue receipts and capital receipts in government budget. Ans. Budget Changes 2019; Different Taxes in India; Practical VAT CST; Practical Service Tax; Practical Excise; Work Contract Tax; NCERT Solutions. Government budget shows its comprehensive exercise on the taxation and subsidies. (i) Tax receipts These solutions for Government Budget And The Economy are extremely popular among Class 12 Commerce students for Economics Government Budget And The Economy Solutions come handy for quickly completing your homework and preparing … (ii) Borrowing and other liabilities (i) Capital expenditure The expenditure by the government which leads to an increase in government assets and reduction in government liabilities, is termed as capital expenditure, e.g. Industry. As it is the first year in which the practical will be held in economics, so the questions cannot be predicted but questions could be asked according to the project option you have choosen . The entire NCERT textbook questions have been solved by best teachers for you. Ans. Tech. (i) Wealth Tax It is a kind of direct tax as it is paid by the same person on which it is levied or imposed, i.e. At the end, you will also get important tips to score well in CBSE Class 12 Chemistry Practical Exam. Government may borrow from : Distinguish between revenue receipts and capital receipts in a government budget. Ans. (ii) Re-allocation of resources. (Delhi 2009) expenditure on old age pensions, salaries, etc. These are financed by the government through the budget and made available free of any direct payment. Government expenditures are aimed at providing benefits to the people and enhancing the development of the country. There are two options:- 1. Define a government budget. (ii) Disinvestment (All India 2014) Ans. This document is highly rated by Class 12 students and has been viewed 6632 times. (All India 2010; Delhi 2010C, 2009) Ans. (Delhi 2013; All India 2013) Answer. 12. Whereas indirect taxes are those taxes for which the incidence and impact fall on separate persons, i.e. (Compartment 2014) (All India 2008) Extra Question for Class 12 Economics Government Budget and the Economy. The government through its budgetary policy attempts to promote fair and right distribution of income in an economy. On what basis is government expenditure classified into capital expenditure and revenue expenditure? for the coming fiscal or financial year. 22. 13. Question 1. 7. (ii) Reallocation of resources for maximisation of social welfare. (Delhi 2008C) Giving reason, state whether the following is a revenue expenditure or a capital expenditure in a government budget: Explain the role of government in allocation of resources. Ans.Borrowings lead to increase in liabilities of the government, hence, it is a capital receipt. (ii) Non-tax revenue It mainly consists of interest receipts on account of loans by the Central Government, dividends and profits on investment made by the government, fees and other receipts for services rendered by the government. Why is repayment of loan a capital expenditure? Candidates who are ambitious to qualify the Class 12 with good score can check this article for Notes, Question & Practice Paper. 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It is very important for students in Class 12 to be clear with the fundamentals of economics as these are used as the base for specialized topics in economics in higher classes. (i) Borrowings These are funds raised by the government to meet its expenses. Chief concepts of this chapter – Government Budget; Objectives of Government Budget; Public goods; Revenue receipts; Capital receipts; Conclusion Explain. 38. in India progressive tax structure is followed (i.e. It refers to a situation where there is no fluctuation in price level in an economy. Revenue expenditures The expenditure of the government which neither cause any increase in the government assets nor cause any reduction in government liabilities, are termed as revenue expenditures, e.g. Budgetary Deficit When a government spends more than it collects by way of revenue, it incurs a budgetary deficit, i.e. We have … Difference between revenue receipts and capital receipts. Ans. Two examples of indirect taxes are : Ans.Repayment of loan causes a decrease in the liabilities of the government. Politics. Classification of Revenue Receipts myCBSEguide has just released Chapter Wise Question Answers for class 12 Economics. 26.Give meanings of revenue expenditures and capital receipts m a government budget. This is Economics Class 12 Government Budget and Economy CBSE Questions & Answers. (b) Indirect tax These are the taxes for which the incidence and impact fall on separate persons, i.e. This chapter explains in brief a manner about how the budget and employment are determined. Economic stability is achieved by saving the economy from harmful effects of various trade cycles and its phases, i.e. 3. 23. NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12. Marketing Management Project for Class 12th on Chocolate. Why are borrowings a capital receipt? Give an example. Question 1. What is revenue expenditure in government budget? Ans. News. government imposes tax on liquors and cigarettes. 1 st April to 31 st March. How can budgetary policy be used to reduce inequalities of income? Direct taxes are those taxes for which the incidence and impact of tax falls on the same person, i.e. Based on CBSE and NCERT Currently only available for. (iii) Deficit budget, i.e. 34.Distinguish between revenue receipts and capital receipts. Fiscal deficit: The fiscal deficit is defined as the excess of government revenue over government expenditure. Give two examples of indirect taxes. or Through its taxation policy, government levies high rate of tax on rich people reducing their disposable income and lowers the rate on lower income group. (iii) Economic stability. ET NOW. (Compartment 2014) actual burden of taxes cannot be shifted, e.g. Questions based on CBSE and NCERT government budget was the proposal to issue New Notes of Rs 2,000 denomination?! 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