Budget deficit creates disequilibrium in every economy, but in developing countries like India, why does government depend on it?

How can a deficit be financed?

Tax rates on higher income group have been increased. Which economic value does it reflect? Explain.

Calculate revenue deficit from the following data:

S. No.	Items	₹(in crore)
(i)	Revenue receipts	50,000
(ii)	Revenue expenditure	60,000

Give meaning of capital expenditure and revenue expenditure in a government budget and an example of each.

Calculate budgetary deficit from the following data:

S. No.	Items	₹(in crore)
(i)	Total expenditure	1,00,000
(ii)	Total receipts	88,000

Giving reasons, state whether the following statements are true or false:

1. Value added tax is a direct tax.
2. Subsidies are treated as revenue expenditure.
3. Borrowings from public are treated as revenue receipts.
4. Revenue deficit is a part of fiscal deficit.

What do you mean by primary deficit? Explain its implications.

Define capital receipts of government. Describe briefly the groups in which these are classified.

Distinguish between revenue deficit and fiscal deficit.