Giving reasons, categorise the following into revenue receipts and capital receipts:

1. Recovery of loans.
2. Corporation tax.
3. Dividends on investments made by government.
4. Sale of a public sector undertaking.

What are implications of fiscal deficit?

Distinguish between revenue expenditure and capital expenditure.

Which of the following is/are included in the revenue budget of the government? Give reasons for your answer.

1. Tax revenue.
2. Non-tax revenue.
3. Loans received from foreign governments.
4. Small savings.
5. Interest payments.

Government raises its expenditure on producing public goods. Which economic value does it reflect? Explain.

From the following data about a Government budget, find out (a) Revenue deficit, (b) Fiscal deficit and (c) Primary deficit:

		(Rs. Arab)
(i)	Capital receipts net of borrowings	95
(ii)	Revenue expenditure	100
(iii)	Interest payments	10
(iv)	Revenue receipts	80
(v)	Capital expenditure	110

1. Define ‘Revenue Expenditure’.
2. Distinguish between Direct tax and Indirect tax.

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.

Distinguish between:

1. Capital expenditure and Revenue expenditure
2. Fiscal deficit and Primary deficit

Explain the 'allocation of resources' objective of Government budget.