Balbharati solutions for Economics 12th Standard HSC Maharashtra State Board chapter 8 - Public Finance in India [Latest edition]

Choose the correct option:

Optional functions of Government :

a) Protection from external attack

b) Provision of education and health services

c) Provision of social security measures

d) Collection of tax

Choose the correct option:

Obligatory functions of the Government:

a) Provision of employment

b) Maintaining internal law and order

c) Welfare measures

d) Exporting goods and services

Choose the correct option:

"Definition - Public finance is one of those subjects which are on the borderline between economics and politics." ......... given by

a) Adam Smith

b) Alfred Marshall

c) Prof. Hugh Dalton

d) Prof. Findlay Shirras

Choose the correct option:

Non-tax sources of revenue:

a) Direct and Indirect Tax

b) Direct Tax and Fees

c) Fees

d) Special Levy

Choose the correct option:

Trends shown by Public expenditure of any Government shows following trend.

a) Constant

b) Increasing

c) Decreasing

d) Fluctuating

Choose the correct option:

Identify the right group of pairs from the given options.

Distinguish between the following concept:

Public finance and Private finance

Distinguish between the following concept:

Internal debt and External debt

Distinguish between the following concept:

Developmental expenditure and Non-developmental expenditure.

Distinguish between the following concept:

Special assessment and Special levy.

Distinguish between the following concept:

Direct tax and Indirect tax.

State with reason whether you agree or disagree with the following statement:

Obligatory function is the only function of the Government.

State with reason whether you agree or disagree with the following statement:

Fines and penalties are a major source of revenue for the Government.

State with reason whether you agree or disagree with the following statement:

The goods and services tax (GST) has replaced almost all indirect taxes in India.

State with reason whether you agree or disagree with the following statement:

Democratic Governments do not lead to increase in public expenditure.

State with reason whether you agree or disagree with the following statement:

Public finance is more elastic than private finance.

Read the given passage and answer the questions:

The conventional notion of social security is that the government would make periodic payments to look after people in their old age, ill-health, disability, and poverty. This idea should itself change from writing a cheque for the beneficiary to institutional arrangements to care for beneficiaries, including by enabling them to look after themselves, to a large extent.
The write-a-cheque model of social security is a legacy from the rich world at the optimal phase of its demographic transition when the working population was numerals enough and earning enough to generate the taxes to pay for the care of those not working. This model is ill-suited for less, well-off India with growing life expectancy, increasing urbanization, and resultant migration. Social security under urbanization will be different from social security in a static society.

1. State the conventional notion of social security.
2. What kind of conceptual change is suggested in the given paragraph?
3. What is a legacy of social security from the rich world?
4. Which features of India make the traditional model of social security ill-suited for the economy?

Write the answers in ‘one’ or ‘two’ paras each: 

Explain the types of Government budget.

State the importance of the Government budget.

Explain the principles of taxation.

Explain non-tax sources of revenue of the Government.

Explain various reasons for the growth of public expenditure.