Government Budget and the Economy-Important Questions

IMPORTANT QUESTIONS

CHAPTER 20: Government Budget and the Economy

  1. What is a government budget? List the objectives of government budget?
  2. Can there be a fiscal deficit in a government budget without a revenue deficit?
  3. Government raises its expenditure on producing public goods. Which economic value does it reflect?
  4. Tax rates on higher income groups have been increased. Which economic value does it reflect?
  5. Identify the following as revenue expenditure and capital expenditure. Give reasons.
    1. Repayment of loans
    2. Expenditure on collection of taxes
    3. Subsidies
    4. Expenditure on building a bridge
  6. How can a government budget help in reducing inequalities of income?
  7. Explain objective of stability of prices of government budget?
  8. Name two sources each of non-tax revenue receipts and capital receipts?
  9. Distinguish between:-
    1. Direct tax and indirect tax
    2. Revenue deficit and fiscal deficit
  10. Define:-
    1. Revenue deficit
    2. Fiscal deficit
    3. Primary deficit
  11. Elaborate economic growth as objective of government budget.
  12. Reduction in income inequalities raises welfare of the people. How can government help through government budget, in this regard? Explain.
  13. Write the difference between revenue receipts and capital receipts?
  14. Explain how the government can use the budgetary policy in reducing inequalities in incomes.
  15. List the following items as revenue and capital expenditure give reason for the same:-
    1. Subsidies
    2. Repayment of loans
    3. Amount borrowed from UK repaid
    4. Grants given to state government
    5. Expenditure on building a bridge
  16. From the following data about a government budget, find out
    1. Revenue deficit
    2. Fiscal deficit
    3. Primary deficit
    Particulars Rs. (Arab)
    Capital receipts net of borrowings 95
    Revenue expenditure 100
    Interest payments 10
    Revenue receipts 80
    Capital expenditure 110
  17. From the following data about a government budget, find
    1. Revenue deficit
    2. Fiscal deficit
    3. Primary deficit
    Particulars Rs. (Arab)
    Tax revenue 47
    Capital receipts 34
    Non-tax revenue 10
    Borrowings 32
    Revenue Expenditure 80
    Interest payments 20