Define revenue receipts in a government budget. Explain how government budget can be used to bring in price stability in the economy.
CBSE DELHI - SET 3 2016
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Revenue receipts are the receipts which do not create liabilities nor lead to reduction in assets.
Stability In the economy means keeping fluctuations in the general price level within limits, When there is inflation, government can reduce its own expenditure to bring down the price level, When there is deflation government can increase its own expenditure to fight it, Government can also use taxes and subsidies to influence personal disposable income and bringing in economic stabilityin the country.
Stability In the economy means keeping fluctuations in the general price level within limits, When there is inflation, government can reduce its own expenditure to bring down the price level, When there is deflation government can increase its own expenditure to fight it, Government can also use taxes and subsidies to influence personal disposable income and bringing in economic stabilityin the country.
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