Download App

Government Budget and Economy — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsGovernment Budget and Economy4 Marks
Question
What is the difference between Revenue Budget and Capital Budget?
✓

Answer

The 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. Whereas the 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.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "4 Marks Question" from Government Budget and Economy→Government Budget and Economy — all question types→Economics STD 12 Humanities & Commerce question papers→Rajasthan Board STD 12 Humanities & Commerce question papers→Rajasthan Board question paper generator→

Similar questions

Explain the credit creation role of commercial banks with the help of a numerical example. Explain the credit creation role of commercial banks with the help of a numerical example.
→
Why exports are added and imports subtracted from domestic final expenditure in order to estimate $\ce{GDP_{MP}}$?
→
Explain the 'allocation of resources' objective of Government budget.
→
Differentiate between Gross Domestic Product at Market Price Vs National Income.
→
An economy is in equilibrium. Find Marginal Propensity to Consume from the following:
National income = 2000
Autonomous consumption = 400
Investment expenditure = 200
→
Explain 'Government's Bank' function of central bank.
→
Tax rates on higher income group have been increased. Which economic value does it reflect? Explain.
→
If you are appointed as the Finance Minister of India, which taxes would you prefer, direct taxes or indirect taxes and why?
→
Explain the role of reverse repo rate in controlling money supply.
→
Read the passage given below and answer the following questions from 1 to 4.
In the Government of India's budget for the year 2013 - 14, the Finance Minister proposed to raise the Goods and Services Tax (GST) on cigarettes. He also proposed to increase income tax on individual earning more than rupee one crore per annum.
  1. Identify the taxes proposed to be increased by the Budget 2013 - 14. The taxes proposed are:
  1. Goods and Services tax on cigarettes.
  2. Income tax on individuals earning Rs. 1 crore or above.
  3. Both [a] and [b]
  4. None of the above
  1. What was the objective(s) behind the proposals put forth in the Budget 2013 - 14?
  1. Revenue generation
  2. Social welfare
  3. Both [a] and [b]
  4. None of these
  1. What welfare objective the government wishes to achieve by increasing GST on cigarettes?
  1. This will discourage their cigarettes
  2. This will encourage their cigarettes
  3. Both [a] and [b]
  4. None of the above
  1. What would be the effect of increase in direct tax on the rich?
  1. It will reduce the gap between rich and the poor, thereby reducing inequalities in income
  2. It will increase the gap between rich and the poor
  3. Both [a] and [b]
  4. None of the above
→