Question | 7. What are the two broad divisions of receipts of the government budget? Name two sources of each kind of receipt. |
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.7 What are the two broad divisions of receipts of the government budget? Name two sources of each kind of receipt.
Solution:-
Two broad divisions of receipts of government budget are: –
- Revenue receipts: – Revenue receipts are those recurring receipts for the Government which neither results in reduction of its assets nor an increase in its liabilities. For example, taxes, fines received by government.
- Capital Receipts: – Capital receipts are those estimated non-recurring receipts for the government which results in reduction of its assets or an increment in its Liabilities. For example, Sale of Government land and borrowings by government.
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.