- Allocation function: Government provides public goods (defence, roads) which are non-rival and non-excludable.
- Public provision vs production: Goods are financed by government, but may be produced by public or private sector.
- Redistribution function: Government uses taxes and transfers to reduce income inequality.
- Stabilisation function: Government controls inflation and unemployment by managing aggregate demand.
Definitions [3]
Define of the following concept.
Balanced budget
A balanced budget occurs when the government’s total expenditure equals its total revenue during a financial year.
Balanced Budget = Total Expenditure = Total Revenue
Define or Explain.
Budget
Budget is a financial statement showing item-wise expected government receipts and government payments during a financial year. It also presents the government's report on the financial performance during the previous fiscal year. A government budget is not only a financial statement, but also a reflection of the government objectives, policies and their expected effects.
A budget is a financial statement of the estimated receipts and expenditures of the government for a given financial year.
Define the following concept:
Budget
According to Prof. Johnson, “A state budget is a statement of the states estimated income and expenditure in a commencing period usually one year.”
According to Prof. Dimock, “Balanced estimate of expenditure and receipt for the given period of time.”
Key Points
Key Points: Government Budget
Government budget = annual financial plan of the government showing estimated receipts and proposed expenditure for the coming financial year (1 April–31 March in India).
- It is an official financial statement of how the government plans to raise money (taxes, borrowings, other receipts) and how it will spend it (on defence, welfare, development, etc.).
- It is a constitutional requirement (Article 112) and is presented every year in Parliament as the central government’s budget.
Key Points: Objectives of Government Budget
Key Points: Types of Budget
- Balanced budget: Government receipts = government expenditure.
- Surplus budget: Receipts > expenditure; mainly used to control inflation.
- Deficit budget: Receipts < expenditure; used to raise spending, jobs and growth, common in developing countries.
Key Points: Components (Structure) of the Government Budget
- Revenue Budget: Regular income & daily expenses (no asset creation).
- Capital Budget: Loans, investments & asset creation.
Important Questions [32]
- The budget consists of revenue receipts and revenue expenditure ______
- State Whether the Following Statements Are True Or False with Reason. Government Budget is a Family Budget.
- Choose the Correct Answer : the Government Budget is for _________.
- In India Budget is Presented in the Parliament by the
- Explain the Budget Expenditure of the Government.
- Define of the following concept. Balanced budget
- Explain the types of a government budget.
- Write Explanatory Note.Components of Government Budget.
- Distinguish Between the Following Revenue Budget and Capital Budget.
- During Depression _____________ Budget is Preferable
- Define 'Or' Explain the Following Concept.
- Define or Explain. Budget
- Give Reasons Or Explain the Following Statement: For the Period of Inflation Surplus Budget is Prepared.
- Write the answers in ‘one’ or ‘two’ paras each: Explain the types of Government budget.
- Find the odd word out: Types of budget: Deficit budget, Zero budget, Balanced budget, Surplus budget
- Surplus Budget and Deficit Budget.
- During the Period of Inflation Surplus Budget is Advisable.
- Define or explain the following concept: Budget
- State Whether the Following Statement is True Or False :Budget is a Monthly Statement - False.
- Write Short Answer for the Following Question:What Are the Typing of Budget.
- Fill in the Blank with Proper Alternatives Given in the Bracket:Budget is the __Of the Revenue and Expenditure of the Coming Year.
- Fill in the Blank Using Proper Alternatives Given in the Bracket:During Depression .............. Budget is Preferable.
- Write Short Answer for the Following Question:Explain the Components of Government Budget ?
- Budget where total revenue equals to total expenditure is called ______.
- Write Short Notes (Any Two) Revenue Receipts
- State Whether the Following Statements Are True Or False with Reasons: the Expenditure is More than Income in Balanced Budget.
- Distinguish Between: Deficit Budget and Balanced Budget
- Give Reasons Or Explain the Following Statement: It is More Appropriate to Tax the Rich in Excess than the Poor.
- _____________ is an Example of Direct Tax
- State Whether the Following Statement is True Or False with Reason: Autonomous Consumption Expenditure Cannot Be Zero.
- Distinguish between the following. Direct tax and Indirect tax.
- Fill in the Blank with Appropriate Alternatives Given Below __________ is an Example of Direct Tax.
Concepts [12]
- Introduction of Public Economics
- Features of Public Economics
- Government Budget
- Objectives of Government Budget
- Features of Government Budget
- Public Economics - Budget (1 Year)(1 April to 31 March)
- Types of Budget
- Taxable Income
- Budgetary Accounting in India
- Budgetary Accounting - Consolidated , Contingency and Public Fund
- Components (Structure) of the Government Budget
- Factor Influencing Government Budget
