(vii) Reducing regional disparities. (Delhi 2010) What is a direct tax? This document is highly rated by Class 12 students and has been viewed 6632 times. Explain why public goods must be provided by the government. These are financed by the government through the budget and made available free of any direct payment. Rearrange your thoughts and start attempting these CBSE Class 12 model test papers on the Government Budget and the Economy. Answer: Public goods are those goods which are consumed collectively. February 9, 2020. Oct 10, 2020 - Important Questions : Government Budget & the Economy Class 12 Notes | EduRev is made by best teachers of Class 12. Government may borrow from : People with income below a certain level are not levied any direct tax altogether. Whereas indirect taxes are those taxes for which the incidence and impact fall on separate persons, i.e. Ans. (All India 2013) Explain the economic stability objective of government budget. (Delhi 2010) Ans.Objectives of a government budget are as follows: 1 Mark Questions Capital Expenditures Those expenditures of the government, which lead to increase in government assets or lead to reduction in government liabilities is termed as capital expenditure, e.g. burden of this tax is not possible to shift to the other person. (a) Direct tax These are the taxes for which the incidence and impact of tax falls on the same person, i.e. In addition to this, private goods cannot be afforded by all, that is, only those who can pay for these goods can avail the benefits of such goods. tax receipts of government. Politics. Distinguish between revenve expenditure and capital expenditure. Classification of capital expenditure are : 1-What will be effect on Equilibrium price and equilibrium quantity of good X if demand of substitute goods of X increases? Multiple Choice Questions (MCQ) for The Government: Budget and the Economy - CBSE Class 12-commerce Macroeconomics on Topperlearning. 11. (VBQ; Foreign 2014) tax receipts of the government. Explain the role of government in allocation of resources. National Council of Educational Research and Training (NCERT) Book Solutions for class 12th Subject: Economics Chapter: Chapter 5 – Government Budget and Economy. Social justice is the principal objective of annual budget of a developing country like India. (All India 2011,2008; Delhi 2009) tax rate increases with increase in income) to redistribute income from rich to poor. QUESTIONS BASED ON HOTS WITH MODEL ANSWERS. (iii) Can effectively and efficiently implement programme. Question 5: When was the proposal to issue new notes of Rs 2,000 denomination approved? (Delhi 2010c, 2009 c) Class 10 Class 12. Give an example of each. actual burden of these taxes cannot be shifted, e.g. burden of these taxes can be shifted to other, e.g. Budget is a financial statement showing the expected receipt and expenditure of Govt. It leads to fair and equitable distribution of income in an economy. (Delhi 2013) On what basis is government expenditure classified into capital expenditure and revenue expenditure? The government allocates the resources in accordance with the social and economic priorities of the country. NCERT Solution for Class 12 Economics Chapter 5 – Government Budget And Economy. How can the government budget be helpful in altering distribution of income in an economy? (iii) Disinvestment. (i) Wealth tax                                  (ii) Value added tax 2. These Class 12th NCERT Solutions for Economics provide detailed, step-by-step solutions to all questions in an Economics NCERT textbook. (a) Proceeds from disinvestment. Ans. 1st April to 31st March. Candidates who are ambitious to qualify the Class 12 with good score can check this article for Notes, Question & Practice Paper. The major objective of the budgetary policy of the government is to enhance the welfare of the society as a whole. These Economics test papers are specially designed to simulate a similar test pattern to CBSE Class 12 exams so you get to learn a lot after each progressive attempt you make in the mock test series. Define capital expenditure. or Government budget is a statement of expected receipts and expenditures of the government over the period of a financial year, i.e. Ans. Which economic value does it reflect? in India progressive tax structure is followed (i.e. Government expenditures are aimed at providing benefits to the people and enhancing the development of the country. (ii) Grants/donations. Revenue Receipts The receipts which neither create any corresponding liability for the government nor does it lead to any reduction in assets is termed as revenue receipts, e.g. (iii) Economic growth Government budget shows its comprehensive exercise on the taxation and subsidies. (ii) Non-tax revenue It mainly consists of interest receipts on account of loans by the Central Government, dividends and profits on investment made by the government, fees and other receipts for services rendered by the government. Sources of capital receipts are: Distinguish between the following. (i) Recovery of loans Capital Receipts The receipts which create corresponding liability for the government or which lead to reduction in assets of the government are termed as capital receipts, e.g. Explain. Tech. (All India 2010) expenses on the construction of national highways, dams and repayment of loans, etc. Ans. Hence borrowing in government budget … Define a government budget. Ans. Q.2) The government budget shows the government’s . Two examples of direct tax are : The government uses the fiscal instruments of subsidies and taxation to improve the distribution of income and wealth in the economy. Government imposed high tax rates on higher income group and low tax rate on lower income group. Explain the objectives of resource allocation and income distribution in a government budget. The government uses progressive taxation policy to reduce the inequalities of income and wealth in the country. Difference between revenue receipts and capital receipts. tax receipts of the government. Ans. Give meanings of revenue receipts and capital expenditures with one example for each. Ans. (ii) Disinvestment refers to the withdrawal of existing investment, e.g. What is government budget? Register for Online tuition on Vedantu.com to score more marks in CBSE board examination. It is very important for students in Class 12 to be clear with the fundamentals of economics as these are used as the base for specialized topics in economics in higher classes. (ii) Value added tax. (All India 2011) State three sources each of revenue receipts and capital receipts in government budget. expenditure on rural development, education and health services, and subsidies. Explain the economic value it reflects. Extra Question for Class 12 Economics Government Budget and the Economy. Distinguish between direct tax and indirect tax. (ii) Re-allocation of resources actual burden of taxes cannot be shifted, e.g. Ans. income tax, corporation tax, etc. GOVT BUDGET AND THE ECONOMY. These solutions for Government Budget And The Economy are extremely popular among Class 12 Commerce students for Economics Government Budget And The Economy Solutions come handy for quickly completing your homework and preparing … loans taken by the government, disinvestment of any PSUs, etc. (ii) Capital budget It is an account of the assets as well as the liabilities of the Central Government, which takes into consideration changes in capital during a fiscal year. (iv) Grants from foreign government. 33.Government raises its expenditure on producing public goods. (ii) Revenue expenditure The expenditure of the government which neither cause any increase in the government assets nor cause any reduction in government liabilities, are termed as revenue expenditures, e.g. Ans. 14. Define government budget. Ans. Prepared by teachers of one of the best CBSE schools in Delhi. (vi) Generation of employment Economics Class 12 Chapter 5 The Government - Functions and Scope is an important chapter and helps the students in learning about the budget. Define indirect tax. Opinion. (Delhi 2009) Ans.Difference between revenue receipts and capital receipts. Objectives of Government Budget ET NOW. expenses on the construction of national highways, dams and repayment of loans, etc. ETPrime. Economic stability is achieved by saving the economy from harmful effects of various trade cycles and its phases, i.e. or Now the Union Budget of New NDA government will . 11. Ans. CBSE Syllabus for Class 12 Biology Practical Exam 2018 – 2019 is available here. On the other hand, the government spent these tax receipts on granting subsidies and providing other public services such as health and education free of cost, to people with lower income groups. Economics Project on Government Budget – Class 12 CBSE. Ans. (ii) Reallocation of resources for maximisation of social welfare. These MCQ's are extremely critical for all CBSE students to score better marks. income tax, corporation tax, etc. service tax, entertainment tax, etc. expenditure on old age pensions, salaries, etc. (b) Indirect tax These are the taxes for which the incidence and impact fall on separate persons, i.e. (All India 2013) Ans. (Delhi 2010c) 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. Captial expenditure 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. Ans. 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, Impacts of Budget Re-distribution of income and wealth is an objective of government budget. Define revenue receipts in a government budget. Related Articles. The government through its budgetary policy attempts to promote fair and right distribution of income in an economy. MF. 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 Expenditures are aimed at providing benefits to the withdrawal of existing investment viva questions on government budget class 12 e.g 2011 ; All 2013,2012. ; Delhi 2009 ) Ans aimed at providing benefits to the poor instruments with a view improve! Better marks Chapter and helps the students in learning about the budget and the economy e.g! Economics provide detailed, step-by-step Solutions to All Questions in this test with each Question around... Over government expenditure incomes are levied lower rate of tax and indirect.. 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