Government budget and the economy class 12 | Lecture 04 | Government budget class 12 | CBSE | NCERT

Описание: Government budget and the economy class 12 | Lecture 04 |Government budget class 12 | CBSE | Macro Economics | govt budget class 12 one shot | govt budget class 12 numericals | government budget and the economy class 12 project | fiscal deficit class 12 | components of government budget | revenue deficit class 12 | primary deficit class 12 | revenue deficit class 12 | Government budget and its components project class 12 | Government budget and the economy class 12 important questions | Government budget and the economy class 12 notes | Government budget and the economy class 12 full chapter explanation | What is fiscal deficit formula | what is primary deficit | revenue deficit fiscal deficit and primary deficit class 12 | fiscal deficit numericals | Government budget and the economy mcq | difference between fiscal deficit and revenue deficit | difference between fiscal deficit and budget deficit | differentiate between fiscal policy and monetary policy

Notes link = https://edunexter.com/government-budg...
Practice questions link = https://edunexter.com/government-budg...
Telegram channel link = https://t.me/Edu_Nexter
GOVERNMENT BUDGET AND THE ECONOMY – COMPONENTS OF GOVERNMENT BUDGET
There are 2 main components of government budget – Revenue Budget and Capital Budget

Revenue Budget – It deals with the revenue aspect of government budget . Revenue budget has 2 parts – Revenue Receipts and Revenue expenditures.
Capital Budget – It deals with the capital aspect of government budget . Capital Budget has 2 parts – Capital receipts and Capital expenditure .
However , Budget can also be classified into Budget Receipts and Budget expenditure .
BUDGET RECEIPTS

It refers to estimated money receipts , which government expects to receive from various sources .
Budget receipts is further classified into 2 parts – Revenue Receipts and Capital Receipts .
REVENUE RECEIPTS ( RR )

RR are those receipts which neither create any liability nor causes any reduction in the assets of the government . Revenue receipts are regular and recurring in nature ( meaning government receives RR on regular basis ) .
There are two sources of Revenue Receipts – Tax revenue and Non – tax revenue
TAX REVENUE – Tax revenue refers to those receipts which government receives by levying taxes and imposing duties.

WHAT IS TAX ? – Tax is a compulsory payment made by the citizens and companies to the government and in return they do not claim any direct benefit .

Tax Revenue can be further classified into –
1. Direct Taxes
2. Indirect Taxes

DIRECT TAX – It refers to those taxes in which the liability to pay tax ( tax impact ) and actual burden of tax ( Tax incidence ) lies on the same person . In case of direct tax , tax burden cannot be shifted . Direct tax directly affects the income level and purchase h power of people and company . Eg – Income tax , Corporate tax , wealth tax ( does not exist now ) , Death duty , Capital gains tax etc.

NOTE- Direct taxes can be levied by the government by using various systems . Three primary systems are Progressive , Regressive and Proportional tax systems . In India , we follow Progressive system , primarily .

INDIRECT TAXES – It refers to those taxes where liability to pay ( impact ) and actual burden ( incidence ) lie on different persons . In case of indirect taxes , tax burden can be shifted to others . Indirect taxes affect the price of goods and services . Eg – GST( Goods and services tax ) ,Sales tax , service tax , VAT ( Value added tax ) , Entertainment tax etc..

NON TAX REVENUE

Non – Tax revenue refers to receipts of government from all sources other than that of tax receipts . Various items under non – tax revenue are Interest , Profits and Dividends , Fees , Fines and Penalties , Escheat , Gifts and grants , Forfeiture , Special assessment .
INTEREST – Suppose government of India ( Central government ) gave loan of ₹100 cr. To any state government / union territory / private entity . So , that entity will pay interest to government of India . This interest income is Revenue Receipt for government of India . Why ? – Because this receipt ( interest income ) is neither increasing any liability nor decreasing any asset to the government of India .

subscribe us:    / edunexter  

follow #edunexter by clicking links.
  / edunexter  
  / edunexter  
  / edunexter  

visit website: https://edunexter.com

join telegram: https://t.me/Edu_Nexter

Disclaimer: This channel does not promote any illegal content, all the content provided by ''Edu Nexter" is meant for educational purpose & non-political views and comments only.