What are revenue receipts? Explain the role of government budget in bringing stability in the economy.
CBSE FOREIGN - SET 3 2016
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Revenue receipts are the receipt which do not create any liabilities nor lead to reduction in any assets.
Stability in the economy means keeping fluctuations in 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 consumption expenditure to fight it. Government can also use taxes and subsidies to influence personal disposable income and bring economic stability in the country.
Stability in the economy means keeping fluctuations in 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 consumption expenditure to fight it. Government can also use taxes and subsidies to influence personal disposable income and bring economic stability in the country.
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