1. How are tax receipts different from non-tax receipts? Discuss briefly.
2. State any two items of revenue expenditure in a Government budget.

Giving reasons classify the following into intermediate products and final products:

1. Furniture purchased by a school.
2. Chalks, dusters, etc. purchased by a school.

Read the passage given below and answer the following questions from 1 to 4. India has scaled back expenditure, including on productive assets that aid economic growth, as the government is confronted with the risk of its budget deficit blowing out. Capital expenditure-the money spent on creating, maintaining or improving fixed assets like roads and factories-Stood at 40% of the budgeted amount in the six months to September, down from 55.5% in the year-ago period, data from the government's Controller General of Accounts show. The overall spending during the period was 49% of the budget aim compared to 53% last year. That's despite Prime Minister Narendra Modi's Government outlining measures worth more than 21 trillion rupees (281 billion) to counter the economic and social fallout of the Covid-19 outbreak. A closer look at the numbers shows the bulk of the spending was directed towards the poor and the farmers, with crucial sectors such as coal, power, shipping and steel receiving less than a third of their annual budget allocation. Spending on capital assets has so far trailed the so-called revenue expenditure that includes interest payments and overheads such as salaries, the data released last week showed. Modi's Government placed spending curbs on some ministries from April through December to manage its cash flow. Source: Business Standard, Nov. 5, 2020

1. Capital expenditure of the government ............ the assets of the government:

1. Increases
2. Decreases
3. Both [a] and [b]
4. None of these

2. Expenditure on health due to Covid-19 is ............ expenditure of the government.

1. Direct
2. Revenue
3. Both [a] and [b]
4. None of these

3. The overall spending has......... as compared to last year.

1. Increased
2. Decreased
3. Both [a] and [b]
4. None of these

4. A closer look at the numbers shows the bulk of spending was directed towards the poor and the.............?

1. Farmers
2. Labour
3. Manager
4. None of these

 
 

If you were to be appointed as the Finance Minister of India, which taxes would you prefer: direct taxes or indirect taxes and why?

Government incurs expenditure to popularise yoga among the masses. Analyse its impact on gross domestic product and welfare of the people.

Distinguish between ‘revenue receipt’ and ‘capital receipt’ and give two examples of each.

Giving reasons categorise the following into revenue expenditure and capital expenditure:

1. Subsidies.
2. Grants given to State Governments.
3. Repayment of loans.
4. Construction of school buildings.

Explain 'revenue deficit' in a Government budget? What does it indicate?

Giving reasons, categorise the following into direct of tax and indirect tax:

1. Corporation tax.
2. Sales tax.
3. Wealth tax.
4. Service tax.

Distinguish between:

1. Capital receipts and revenue receipts.
2. Direct tax and indirect tax.