Answer: (a) April I to March 31 Opinion. Ans. (a) Proceeds from disinvestment. The entire NCERT textbook questions have been solved by best teachers for you. On the other hand, the government spent these tax receipts on granting subsidies and providing other public services such as health and education, to people with lower income groups, the wealth gets redistributed and reduction in inequalities is achieved. Explain any two objectives of government budget. The economic value that is reflected in the rise in tax rate for higher income group is the ‘equality and social welfare’. (iii) Economic stability. (i) Expenditure on scholarships (Delhi 2008) (i) Fees These questions are known to very few people. Give an example. (ii) Redistribution of incomeThe economic value that is reflected in the rise in tax rate for higher income group is the ‘equality and social welfare’. class 12 commerce. GOVT BUDGET AND THE ECONOMY. for the coming fiscal or financial year. loans taken by the government, disinvestment of any PSUs, etc. National Council of Educational Research and Training (NCERT) Book Solutions for class 12th Subject: Economics Chapter: Chapter 5 – Government Budget and Economy. Classification of Revenue Receipts (Compartment 2014) (All India 2010) boom, recession, depression and recovery, through various budgetary tools. Ans. 35. (All India 2010) Economic stability is achieved by saving the economy from harmful effects of various trade cycles and its phases, i.e. (i) Direct taxes are those taxes for which the incidence and impact of tax falls on the same person, i.e. (ii) Expenditure on building a bridge is a capital expenditure because it increases the assets of the country. 30. (i) Tax revenue It consists of the proceeds of taxes and other duties levied by the Central Government. Ans. 14. (ii) Expenditure on building a bridge (Foreign 2014) (iii) Income tax   (Delhi 2008C) Chapter-wise Important Questions for CBSE Class 12 Macro Economics: Chapter 1 – Introduction to Macro Economics: Chapter 4 – Determination of Income and Employment: Chapter 2 – National Income Accounting: Chapter 6 – Open Economy Macroeconomics: Chapter 3 – Money and Banking Ans.The receipts which neither create any corresponding liability for the government nor create any reduction in assets, are termed as revenue receipts, e.g. 26.Give meanings of revenue expenditures and capital receipts m a government budget. Government Budget and the Economy Class 12 MCQs Questions with Answers. 19. 33.Government raises its expenditure on producing public goods. Budget is a financial statement showing the expected receipt and expenditure of Govt. Ans. 1 Mark Questions Politics. Direct taxes are those taxes for which the incidence and impact of tax falls on the same person, i.e. Give two examples of each. Give an example of each. Multiple Choice Questions (MCQ) for The Government: Budget and the Economy - CBSE Class 12-commerce Macroeconomics on Topperlearning. February 8, 2020. Project on Stock Exchange Financial Management Class 12 CBSE. The allocative function is concerned with allocating the resources between private and public sectors. income tax, corporation tax, etc. Free PDF download of Important Questions with Answers for CBSE Class 12 Economics Chapter – Government Budget and the Economy prepared by expert Economics teachers from latest edition of CBSE(NCERT) books only by CoolGyan to score more marks in CBSE … Ans. Financial Year in India is : (a) April I to March 31 (b) January 1 to December 31 (c) October 1 to September 30 (d) None of the above. Ans.The expenditure by the government which leads to an increase in government assets and reduction in government liabilities, is termed as capital expenditure, e.g. Extra Question for Class 12 Economics Government Budget and the Economy. The government does the allocation of resources in such a manner that there is a balance between the goals of profit maximisation of PSUs and social welfare in an economy. Sources of revenue receipts are : 24. At the end, you will also get important tips to score well in CBSE Class 12 Chemistry Practical Exam. 4. Budget 2021. Questions are prepared taking important topics of NCERT Books Economics as Central Bank and its Functions, Government Budget, Balance of Payment, National Income, Multiplier, Poverty, Unemployment, Infrastructure, Human Capital Formation, Goods and Services Tax, etc. Government budget is a statement of expected/estimated receipts and expenditures of the government over a period of a financial year, i.e. Revenue Expenditures Those expenditures of the government, which neither cause any increase in government assets nor cause any reduction in government liabilities are termed as revenue expenditures, e.g. Ans. The government uses progressive taxation policy to reduce the inequalities of income and wealth in the country. 1. Question 1. 7. topic:government budget which will help you to get good score in CBSE class 12 Economics board 2019 You can see more important questions, other chapters, click on the below link, burden of these taxes can be shifted to other, e.g. Revenue receipts The receipts of government which neither create any corresponding liability of the government, nor it create any reduction in assets, are termed as revenue receipts, e.g. Class 12 Economics – Government Budget and the Economy – Get here the Notes, Question & Practice Paper of Class 12 Economics for topic Government Budget and the Economy Notes. (All India 2012) Distribution of income Government budget shows its comprehensive exercise on the taxation and subsidies. Important tips to score better marks in Delhi of any direct tax altogether major objective of government policy... A capital receipt for the government budget can help in fair distribution of wealth and social welfare remains the objective. 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