importance of government budget class 12

Ans. Free PDF download of Important Questions with Answers for CBSE Class 12 Economics Chapter – Government Budget and the Economy prepared by expert Economics teachers from latest edition of CBSE(NCERT) books only by CoolGyan to score more marks in CBSE … Government budget is a statement of expected/estimated receipts and expenditures of the government over a period of a financial year, i.e. Revenue Expenditure; The above mentioned is the concept that is explained in detail about Government Budget – Meaning and its Components for the Class 12 Macroeconomics students. (ii) Redistribution of incomeThe economic value that is reflected in the rise in tax rate for higher income group is the ‘equality and social welfare’. (All India 2010) The school budget is a financial plan that involves strategic planning, receiving funds, expenditures and evaluating the results. actual burden of taxes cannot be shifted, e.g. Give meanings of revenue receipts and capital expenditures with one example for each. (i) Income from public enterprises The main objective of the budgetary policy of the government is to reduce inequalities of income and wealth in the country. expenditure on old age pensions, salaries, etc. (b) Indirect tax These are the taxes for which the incidence and impact fall on separate persons, i.e. (All India 2009) In this receipt, both tax revenue (such as excise duty, income tax) and non-tax revenue (like profits, interest receipts) are recorded. (i) Tax revenue It consists of the proceeds of taxes and other duties levied by the Central Government. (ii) Value Added Tax It is a kind of indirect tax as it is imposed on one person and its burden shifts to other person. Government Budget And The Economy. government imposes tax on liquors and cigarettes. 6. Ans. expenditure on old age pensions, salaries, etc. 40. Government imposed high tax rates on higher income group and low tax rate on lower income group. 6 docs. GOVT BUDGET AND THE ECONOMY. (i) Fees (Delhi 2010c, 2009 c) TopperLearning’s Experts and Students has answered all of The Government Budget And The Economy of CBSE Class 12 Commerce Economics questions in detail. Explore link: Central Problems of an Economy, Also Read: Concept of Government Budget and the Economy, You might want to know: Economic system in India. Ans. (ii) Disinvestment (All India 2014) Obviously, the budget is the most important information document of the government because government implements its plans and programmes through the budget. 7. 5. estimated receipts < estimated expenditure, 3. or CBSE Class 12. Ans. On the other hand, it discourages production of hazardous and harmful goods by imposing heavy taxes, e.g. It determines government expenditure and receipts. Captial 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. Important Points of Government Budget • Budget is prepared by government at all level i.e, central government state government and local government prepare its respective annual budget . The additional questions for practice from XII class CBSE exam are collected from various sources. That is why, it is a capital expenditure. Difference between revenue expenditure and capital expenditure, 20. By spending more on provision of free services like education and health, government is trying to promote social justice. (ii) Re-allocation of resources (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. Distinguish between revenue receipts and capital receipts in a government budget. This course is all about the Government budget, its receipts and expenditure and different budget deficit from class 12 Economics. Explain. or Two sources of non-tax revenue receipts are : actual burden of taxes cannot be shifted, e.g. Define revenue receipts in a government budget. Budget: Get The Government: Budget and the Economy, Economics Chapter Notes, Questions & Answers, Video Lessons, Practice Test and more for CBSE Class 10 at TopperLearning. service tax, entertainment tax, etc. (Delhi 2008) (All India 2012) Explain the role of government in allocation of resources. (ii) Budget estimates pertain to a fixed period, generally a year. (iv) Management of public enterprises (All India 2009)                    ! Ans. Explain the economic stability objective of government budget. Budgeting consists of defining priorities and needs, and receiving and spending funds over a particular period, usually a year for school district (Brimley, Verstegen & Garfield, 2012 (p. 279). (ii) Tax revenue Sources of capital receipts are: ADVERTISEMENTS: Government of India Budget: Meaning, Elements, Objectives and Types! (All India 2012) NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12. estimated receipts = estimated expenditure (Compartment 2014) Public Expenditure These expenses are incurred by the government for developing infrastructure and promoting social welfare. (i) Tax receipts are revenue receipts for the government because neither they create a liability nor they lead to reduction in any assets. Even distribution of wealth and social welfare remains the main objective of budgetary policy. or Subscribe For Latest Updates . Tax rates on higher income group have been increased. (All India 2009) The government uses progressive taxation policy to reduce the inequalities of income and wealth in the country. However, we restrict our studies to budget of central government known as Union Budget. income tax, corporation tax, etc. The fiscal year starts from 1st April and concludes on 31st March of the next year. CBSE Class 12 Economics Chapter- Government Budget and the Economy Important Questions – Free PDF Download. 18. 27. The main objective of the budgetary policy of the government is to reduce inequalities of income and wealth in the country. Here are a few reasons why it’s important for the government to have a budget: Proper resource pool allocation When it comes to budgeting, identifying areas of weakness helps the government to allocate resources in a useful and sustainable manner. Ans. 30. (ii) Reduction of poverty and employment: To eradicate mass poverty and unemployment by creating maximum employment opportunities and providing maximum social benefits to the poor. tax receipts of the government. Register for Online tuition on Vedantu.com to … Reallocation of resources -:It means managed and proper distribution of resources. Class 10 NCERT Economics. Class 12 Economics chapter … On the other hand, it discourages production of hazardous and harmful goods by imposing heavy taxes, e.g. Download free printable assignments worksheets of Economics from CBSE NCERT KVS schools, free pdf of CBSE Class 12 Economics Government Budget and the Economy Assignment chapter wise important exam questions and answers CBSE Class 12 Economics Government Budget and the Economy Assignment. The union budget is the prepared by the central government and is presented in the Lok Sabha; it is divided into the railway budget and main budget. (Delhi 2011 C; All India 2008) (Compartment 2014) Distinguish between direct tax and indirect tax. Capital receipts The receipts which create corresponding liability for the government or lead to reduction in assets of the government are termed as capital receipts, e.g. Economic Stability 4. Important Topics in Economics: Is the following a revenue receipt or a capital receipt in the context of government budget and why? This allocation is done with the help of government budgetary policy. Impacts of Budget To know more, stay tuned to BYJU’S. Management of Public Enterprises 5. Classification of capital expenditure are : (All India 2010; Delhi 2009) People with income below a certain level are not levied any direct tax altogether. What is government budget? (ii) Entertainment tax It is an indirect tax, as the burden of this tax can be shifted to other’s. (ii) Disinvestment refers to the withdrawal of existing investment, e.g. Practicing such most important questions certainly help students to get good marks in exams. Introductory Macroeconomics. (iii) Disinvestment. Give an example of each. The government allocates the resources in accordance with the social and economic priorities of the country. Classification of Revenue Expenditure Ans. (i) Expenditure on scholarships is a revenue expenditure because neither it lead to decrease in liabilities nor lead to an increase in assets. (i) Direct taxes are those taxes for which the incidence and impact of tax falls on the same person, i.e. Economic stability is achieved by saving the economy from harmful effects of various trade cycles and its phases, i.e. CBSE Notes Class 12 Business Studies Government Budget and Economy. It provides a benchmark in evaluating success or failure in achieving goals and provides suitable improving measures. The government does the allocation of resources in such a manner that there is a balance between the goals of profit maximisation of PSUs and social welfare in an economy. For this, it performs the allocative function. Sources of revenue receipts are : (a) Direct tax These are the taxes for which the incidence and impact of tax falls on the same person, i.e. Re-distribution of income and wealth is an objective of government budget. The economic value reflected by the above act of the government is ‘Promoting Social Welfare’. The Government : Budget And The Economy Book Chosen. Explain. burden of these taxes can be shifted to others, e.g. Social justice is the principal objective of annual budget of a developing country like India. Government budgets are of the following types: [citation needed] Union budget : The union budget is the budget prepared by the central government for the country as a whole.The Union Budget of India, also referred to as the Annual Financial Statement in the Article 112 of the Constitution of India, is the annual budget of the Republic of India. (ii) Recovery of loans It refers to that inflow of cash which the government has disbursed previously. tax receipts of government. Introductory Macroeconomics Subject Chosen. The government budget is an annual statement, showing item wise estimates of receipts and expenditures shown in the budget are not the actual figures, but the estimated values for the coming year. A government budget is a statement showing item wise estimated receipts and estimated expenditures under various heads during a fiscal year which runs from April 1 to March 31. Direct taxes are those taxes for which the incidence and impact of tax falls on the same person, i.e. (ii) Surplus budget, i.e. 36. 14. Ans. On what basis is government expenditure classified into capital expenditure and revenue expenditure? Government may borrow from : Give two examples of indirect taxes. With the help of Notes, candidates can plan their Strategy for particular weaker section of the subject and study hard. 10. (ii) Value added tax. (ii) Expenditure on building a bridge (Foreign 2014) It acts as a device that identifies and focuses on the development of an underprivileged person. Government budget shows its comprehensive exercise on the taxation and subsidies. Ans. (All India 2011) Currently only available for. Capital Expenditure; ii. Previous … 35. The most important questions for annual examination from chapter 8 Government Budget and the Economy are given here for download. CBSE Gujarat Board Haryana Board. Budget is estimated for a fixed period, typically for a year. Classification of capital receipts are : 39. (i) Tax receipts This is one of the most fundamental objectives behind framing a government budget. (ii) Reduction of poverty and employment: To eradicate mass poverty and unemployment by creating maximum employment opportunities and providing maximum social benefits to the poor. Government expenditures are aimed at providing benefits to the people and enhancing the development of the country. A government budget is an annual statement of the estimated receipts and estimated expenditure of the government during a fiscal year. (ii) Promotes better allocation of resources. (ii) Borrowing and other liabilities On such basis expenditure is classified into : (i) Recovery of loans. The budget explains what the income and expense of a nation is. There are many objectives of the government budget, such as allocation of resources, public accountability, etc. Difference between revenue receipts and capital receipts. Define a government budget. Class 9 NCERT Economics. or CBSE Class 12 Economics Chapter- Government Budget and the Economy Important Questions – Free PDF Download. Two examples of indirect taxes are : importance of govt budget are : (i) Economic growth: To promote rapid economic growth so as to improve living standards of the people. It provides a benchmark in evaluating success or failure in achieving goals and provides suitable improving measures. Ans.Repayment of loan causes a decrease in the liabilities of the government. (All India 2013,2012; Delhi 2010C) (Delhi 2011c; All India 2008) 24. But, as the public goods as required by all and are essential from welfare point of view, thus, government provide these goods. 13. 22. tax rate increases with increase in income) to redistribute income from rich to poor. Ans. Class 12th Economics important questions in chapter 8 Government Budget and the Economy for free download in PDF format. The government prepares an expenditure according to its objective and then starts gathering the resources and funds to fulfil the proposed investment. Giving reasons to classify the following into direct tax and indirect tax. burden of this tax is not possible to shift to the other person. (ii) Re-allocation of resources. A budget influences society in three steps. Ans. “A government budget is an annual statement of the estimated receipts and expenditure of the government during a fiscal year. (vii) Reducing regional disparities. People with higher incomes are levied higher rate of tax and people with lower income are levied lower rate of tax. 3.5 / 5 ( 4 votes ) Contents1 INTRODUCTION:2 MEANING:3 OBJECTIVES:4 COMPONENTS OF BUDGET:4.1 Revenue Budget:4.2 Capital Budget:5 BUDGET EXPENDITURE:6 ACKNOWLEDGMENT:7 CERTIFICATE: INTRODUCTION: In the modern world, every go government aims at maximizing the welfare of its country. 4 docs. government imposes tax on liquors and cigarettes. The fiscal year is taken from 1 st April to 31 st March. actual burden of the taxes cannot be shifted, e.g. It is of two types: i. the government of India is undertaking disinvestment by selling its shares in Maruti Udyog Ltd. After doing this course you'll learn it's objectives and components namely revenue budget and capital budget. Candidates who are ambitious to qualify the Class 12 with good score can check this article for Notes, Question & Practice Paper. Ans.Difference between revenue receipts and capital receipts. (All India 2013) Ans. 4. A government budget is a year-long country’s financial report explaining item-wise calculations of future revenue and expenditure. These ncert book chapter wise questions and answers are very helpful for CBSE board exam. (i) Redistribution of income and wealth. The government uses progressive taxation policy to reduce the inequalities of income and wealth in the country. boom, recession, depression and recovery, through various budgetary tools. It comprises efficient and productive programmes to deliver goods and services goods and services and achieve targeted goals. expenses on the construction of national highways, dams and repayment of loans, etc. Free courses. disinvestment of PSUs. When the expected receipts are equal to the expected expenditures in the government budget, the budget is said to be balanced (Expected receipts = Expected expenditures). Revenue Expenditures Those expenditures of the government, which neither cause any increase in government assets nor cause any reduction in government liabilities are termed as revenue expenditures, e.g. How can the government budget be helpful in altering distribution of income in an economy? State three sources each of revenue receipts and capital receipts in government budget. (i) Borrowings These are funds raised by the government to meet its expenses. Government imposed high tax rates on higher income group and low tax rate on lower income group. expenditure on rural development, education and health services, and subsidies. Class 12 Economics – Government Budget and the Economy – Get here the Notes, Question & Practice Paper of Class 12 Economics for topic Government Budget and the Economy Notes. QUESTIONS BASED ON HOTS WITH MODEL ANSWERS. Economics. or OBJECTIVES OF BUDGET. Class 11 … 7. (ii) Entertainment tax This is one of the most fundamental objectives behind framing a government budget. 8. Two examples of direct tax are : Give meanings of capital receipts and revenue receipts with an example of each  (Delhi 2008) There are various components of a governmental budget: Executive budget, appropriated budget, Non‐appropriated budget. To know more, … It leads to fair and equitable distribution of income in an economy. 9. Download free printable assignments worksheets of Economics from CBSE NCERT KVS schools, free pdf of CBSE Class 12 Economics Government Budget and the Economy Assignment chapter wise important exam questions and answers CBSE Class 12 Economics Government Budget and the Economy Assignment. (i) Wealth tax It is a direct tax, as the burden of this tax cannot be shifted to someone else. (HOTS; Delhi 2012,2011) CBSE Class 12 Economics HOTs Government Budget the Economy. However, we restrict our studies to budget of central government known as Union Budget. Government Budget and The Economy Important Questions for class 12 economics Concept and Components of Government Budget 1. Introductory Macroeconomics: Class 12 NCERT. Objective of the Government Budget The objective that are pursued by the government through the budget are-I. Government Budget It is a statement of expected/estimated receipts and expenditure of the government over the period of a financial year, i.e. 34.Distinguish between revenue receipts and capital receipts. This is a descriptive chapter on government budget of Indian economy, wherein its objectives, importance, types, components, budget deficits and its types (Revenue, Fiscal, Primary Deficit) and … (All India 2009,2008) 1 st April to 31 st March. (i) Income tax                      (ii) Corporation tax                                                                        ‘. (Delhi 2013,2009; All India 2008) (All India 2011,2008; Delhi 2009) (Compartment 2014) Ans. The entire NCERT textbook questions have been solved by best teachers for you. Explain the economic value it reflects. … Economics Class 12 Chapter 5 The Government - Functions and Scope is an important … Higher Order Thinking Skills (HOTS) download and print. As the public goods cannot be provided by the private sectors through market mechanism, hence the need for providing such goods is to be fulfilled by the government. 1. Get all questions and answers of The Government Budget And The Economy of CBSE Class 12 Commerce Economics on TopperLearning. in India progressive tax structure is followed (i.e. Give two examples of non-tax revenue receipts. (Delhi 2011c, 2009c) tax rate increases with increase in income) to redistribute income from rich to poor. 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(i) Re-distribution of income and wealth. Oct 10, 2020 - Important Questions : Government Budget & the Economy Class 12 Notes | EduRev is made by best teachers of Class 12. The government does the allocation of resources in such a manner that there is a balance between the goals of profit maximisation of PSUs and social welfare in an economy. The government uses these fiscal instruments with a view to improve the distribution of income and wealth in the economy, e.g. Types of Budget Reducing inequalities in income and wealth 3. Give an example. Define capital expenditure. 5. Give two examples of direct tax. Important Points of Govt. 3. It comprises of expenditure on old age pensions, salaries, etc. Register for Online tuition on Vedantu.com to … (ii) Expenditure of building infrastructure like roads, metro rail network, etc. (i) Economic stability Economic stability an objective of government budget Government tries to establish economic stability by its budgetary policies. These questions are repeatedly asked in exams in one or other way round. Define government budget. Some of the important objectives of government budget are as follows: 1. tax receipts of the government. Distinguish between the following. The budget is classified into two segments: (i) Revenue Budget – The revenue budget contains revenue expenditure and receipts. Though budgets do not assure 100% success in economic stability, however, it helps to bypass failure. State its main objectives. (All India 2008) This document is highly rated by Class 12 students and has been viewed 6632 times. 5 docs 8 tests. Which economic value does it reflect? Economic Growth and 6. or Ans. Even distribution of wealth and social welfare remains one of the main objective of budgetary policy. There are mainly two types of budget in India: Union and State budget. State any two sources of non-tax revenue receipts. It refers to a situation where there is no fluctuation in price level  in an economy. Ans. (Delhi 2013; All India 2013) Reducing regional disparities. The funds are collected from fees, taxes, interest on loans given to states, fines, and dividends by public sector enterprises. On the other hand, the government spent these tax receipts on granting subsidies and providing other public services such as health and education, to people with lower income groups, the wealth gets redistributed and reduction in inequalities is achieved. People with income below a certain level are not levied any direct tax altogether. (d) International Financial Institutions like IMF, World Bank Etc. (iii) Economic growth Distinguish between balanced budget and surplus budget. Ans. The government uses progressive taxation policy to reduce the inequalities of income and wealth in the country. Government encourages the production of certain commodities by giving tax reliefs and providing necessary infrastructural requirements. A budget is a tool that transfers a general idea into a productive, action-oriented and aspirational goal. (VBQ; All India 2014) Note Interest payments by government on loans taken is also an example of revenue expenditure. (i) Re-distribution of income and wealth (Delhi 2009) 25. Classify the following receipts into revenue receipts and capital receipts.

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