Explain the two components of government budget.
Download our app for free and get started
The two components of Government budget are Revenue Budget and Capital Budget.
- Revenue Budget: Revenue budget consists of revenue receipts of the government and the expenditure met from such revenues. The revenue receipts includes tax revenue and non-tax revenue.
- Capital Budget: Capital budget consists of capital receipts and capital expenditure of the government. Capital receipts are the receipts of the government which create liability or reduce financial assets. They include market borrowing, foreign debts, repayment of loans and advances. Capital expenditure refers to the expenditure of the government, which leads to creation of assets or reduction in liabilities.
Download our appand get started for free
Experience the future of education. Simply download our apps or reach out to us for more information. Let's shape the future of learning together!No signup needed.*
Similar Questions
- 1View SolutionGiving reasons, classify the following into revenue receipts and capital receipts:
- Recovery of loans.
- Profits of public sector undertakings.
- Borrowings.
- 2View SolutionGive the relationship between the revenue deficit and the fiscal deficit.
- 3View SolutionWhy developing countries like India prepare a deficit budget?
- 4View SolutionWe should try to regulate interest rates prevailing among farmers, weaker sections of society and poor villagers. How can we control it?
- 5View SolutionExplain how can government spending be helpful in removing deficient demand.
- 6View SolutionHow is the GST going to be administered?
- 7View SolutionState the basis of classifying government receipts into revenue receipts and capital receipts. Give an example of each.
- 8View SolutionHow will Goods and Services Tax (GST) be a comprehensive indirect tax? Explain.
- 9View SolutionDistinguish between direct taxes and indirect taxes. Give an example of each.
- 10View SolutionExplain why public goods must be provided by the government?