| Question | 11. Distinguish between revenue receipts and capital receipts. |
| Class | Class 12 |
| Subject | Economics (Macroeconomics) |
| Category | Class 12 Economics Solutions Sandeep Garg |
Sandeep Garg Macroeconomics Class 12 Solutions Circular flow of Income – Short Questions – Q.11 Distinguish between revenue receipts and capital receipts.
“OR”
Distinguish between ‘revenue receipt and ‘capital receipt and give two examples of each.
“OR”
How are capital receipts different from revenue receipts? Discuss briefly.
Solution:-
| Basis | Revenue Receipts | Capital Receipts |
| Meaning | They neither create any liability nor reduces assets of the government. | They either create a liability or reduces assets of the government. |
| Nature | They are recurring in nature. | They are non-recurring in nature. |
| Example | Tax revenue, fines, interest etc. | Borrowings, sale of government property etc. |
Short Questions – Sandeep Garg Macroeconomics Class 12 Solutions Government budget and the Economy
- State three objectives of a government budget
- Explain objective of stability of prices of government budget
- How can a government budget help in reducing inequalities reducing inequalities of income? Explain.
- Explain the ‘allocation of resources’ objective of Government budget.
- What is a government budget? Name two sources each of non-tax revenue receipts and capital Receipts.
- What is a government budget? Give the meaning of: (a) Revenue deficit; (b) Fiscal deficit.
- What are the two broad divisions of receipts of the government budget? Name two sources of each kind of receipt.
- Define tax revenue. What are the two kinds of tax revenues? Give two examples of each.
- Distinguish between Direct Tax and Indirect Tax
- Explain with the help of suitable examples the basis of classifying taxes into direct and indirect taxes
- Distinguish between revenue receipts and capital receipts
- Give meanings of Capital receipts and Revenue receipts with an example of each.