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Economics 2 Marks Each

Budget · Gujarat Board (GSEB) STD 11 Commerce (GSEB - English Medium). 25 questions.

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25 questions · timed · auto-graded

Question 12 Marks
Give the full form of $GST, CGST, SGST, UTGST, IGST.$
Answer
  • $GST$: Goods and Services Tax
  • $CGST$: Central Goods and Services Tax
  • $SGST$: State Goods and Services Tax
  • $UTGST$: Union Territory Goods and Services Tax
  • $IGST$: Integrated Goods and Services Tax
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Question 22 Marks
In how many categories is Goods and Services Tax $(GST)$ classified? Which are those?
Answer
There are four different types of $GST$ as listed below:
  1. The Central Goods and Services Tax $(CGST)$
  2. The State Goods and Services Tax $(SGST)$
  3. The Union Territory Goods and Services Tax $(UTGST)$
  4. The Integrated Goods and Services Tax $(IGST)$
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Question 32 Marks
Give the meaning of Goods and Services Tax $(GST)$
Answer
The goods and services tax $(GST)$ is a tax on goods and services sold domestically for consumption. The tax is included in the final price and paid by consumers at point of sale and passed to the government by the seller. The $GST$ is a common tax used by the majority of countries globally.
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Question 42 Marks
Give the merits of a surplus budget.
Answer
  • Following are the benefits of surplus budget.
  • Economic Stability is maintained.
  • It helps to control the situation of inflation if it is extreme.
  • Government can roll back the supply of money from the economy, reduces purchasing . ' Power and controls inflation. take hel
  • Even if the expenditure increases, Govt. need not have to p of Debt.
  • In Such type of budget current expenditures are met from current tax revenue. So there is no need of borrowing loan. Thus, there is no need of increasing tax to repay the loan. That means future generation does not have to bear any burden.
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Question 52 Marks
Explain the types of Budget.
Answer
  • Budget has mainly two types :
  • Balanced Budget, in which Government's Estimated expenditure is same as estimated income.
  • Unbalanced Budget, in which there is difference between I. government's 'estimated income and expenditure.
    • On this basis there are two types:
      • Surplus budget in which government's estimated income is more than estimated expenditure,
      • Deficit Budget, in which government estimated expenditure is more than government estimated income.
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Question 62 Marks
Explain how resources are re-allocated through a Budget?
Answer
  • Through budget Government levies high tax on rich people. The income earned from it is used for social ,welfare of poor people then Re-distribution of income is possible. Providing basic service free of cost or at cheaper rate like Education. Health etc. then indirectly Re- A distribution of income is possible. .
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Question 72 Marks
"Current fiscal deficit and Primary deficit terms have become more important."- Explain.
Answer
  • In current budget fiscal deficit has become more important point. If deficit budget is not kept under control in terms of GDP then the situation of inflation arises.
  • In the same way how much amount can be used for economic development out of fiscal deficit that depends on primary deficit. If the burden of payment of Interest decreases then it is possible to keep ,primary deficit in control. This both deficit affects each other.
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Question 82 Marks
"Budget is reflection of the Economy" - Explain
Answer
  • Budget is the reflection of the Economy. Through budget people knows about the economic policy to be adopted by the Government.
  • E.g. If Government reduces Direct tax and Excise and Octroi duty, this shows it gives motivation to Industries. In the same way if custom duty is decreased it means to give importance to liberalization.
  • If more investment is done in Agriculture and it related activities then encouragement is given to Agriculture that is the information which we acquire.
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Question 92 Marks
"Surplus budget is a barrier to Economic Development." - Explain.
Answer
  • To frame surplus budget, Current Account Expenditure is shown more than Income. For this tax rate needs to be increased which hinder economic development.
  • On the other side expenditure is to be controlled, due to which less expenditure is done for Economic development for e.g. Reduction in the subsidy given to Electricity or Transportation and Communication, this hinders economic development because its rate increases.
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Question 102 Marks
Deficit Budget is inevitable for Economic Growth- Explain.
Answer
  • It is inevitable to present Deficit Budget to fulfill the objectives of Economic stability, Economic Growth, Economic Equality.
  • It becomes necessary for the developing country to frame deficit budget for economic stability along with Economic growth. Infrastructure is to be developed by investing in country's basic industries.
  • This are requires more capital investment as it is for long term investment and capital formation. On the other side it is difficult to get huge income from current account. In this situation it becomes inevitable to frame Deficit Budget.
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Question 112 Marks
"Balanced budget is Ideal not reality." Explain.
Answer
  • Government should plan its expenditure according to the current income it is an ideal situation, but not reality.
  • Due to this Economic stability is maintained at the lowest, while Public has the expectations of more and more facilities. To satisfy the expectations of the population, Government has to do provision of more expenditure in Govt. Budget, but to increase tax or non-tax income is difficult so budget is mostly framed of deficit.
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Question 122 Marks
Give the main objectives of Budget.
Answer
  • The following objectives are mentioned behind presentation of budget :
  • To get the consent of members of legislative assembly.
  • Responsibilities of coming year and to fulfill it possibilities of tools and equipments are checked.
  • To give proper direction to distribution of resources.
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Question 132 Marks
List the Income of capital account of central.
Answer
  • Following are the capital account income of central government :
  • Net Recovery from in advances given to union territory and Public enterprises in the past.
  • Net Advances acquired from market means income from debt.
  • Collection of short terms savings scheme.
  • Various Deposits, Provident fund etc.
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Question 142 Marks
Write the sources of income of local self Government ?
Answer
  • Local self Government mainly acquire from the following sources :
  • Tax revenue income
  • Non-tax income
  • Grant-in-Aid
  • Borrowings and Loans.
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Question 152 Marks
Which main services are provided by Local self government organization ?
Answer
  • Local self government institute fulfill economic services like Road, Water, Electricity, and In Social services like Health and Education In addition Gardens, Entertainment tools and transportation services are provided.
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Question 162 Marks
What is local self government ?
Answer
  • Local self government is a basic unit which is directly associated with the citizens.
  • This type of institution is of two types :
    • Urban local self government institute. In which corporation, Nagar Panchayat are included,
    • Rural self government institute which includes Jilla Panchayat, Taluka Panchayat and Gram Panchayat.
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Question 172 Marks
What is Surplus Budget ?
Answer
  • A budget in which estimated income is more than estimated expenditure is called surplus budget.
  • This type of Budget is found in Developed countries.
  • In general when economy is trapped in extreme inflation then to bring it in normal situation surplus budget is presented.
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Question 182 Marks
What is Deficit Budget ?
Answer
  • A budget in which Government Estimated Expenditure is more than Estimated Income is called Deficit Budget.
  • In this situation Govt. has to take loan from public, bank and financial institute to meet the deficit.
  • Some time Govt. borrows treasury bills from Central bank which is called deficit budget.
  • This increases supply of money in the Economy.
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Question 192 Marks
What is Balanced Budget ?
Answer
  • A budget in which government's estimated expenditure is same as estimate income is called Balanced Budget.
  • In this all the government expenditure is met from the tax income of the same year.
  • If it is balanced budget there is no change in the Total Expenditure of the society.
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Question 202 Marks
What is the main difference between the division of expenditure by state and central budget?
Answer
  • In Central Government budget, Expenditure is divided into Planned and Unplanned Expenditure.
  • While state government groups it is divided into Development Expenditure and Non Development Expenditure.
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Question 212 Marks
Which are the main sections of Revenue income and Revenue expenditure ?
Answer
  • There are two sections of Revenue Income :
  • Tax revenue income,
  • Non tax income.
    • While Revenue expenditure has two sections :
      • Non-Planned Expenditure,
      • Planned Expenditure.
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Question 222 Marks
Which types of estimates are shown in Budget ? Why ?
Answer
  • Two types of Budget are presented with respect to income and expenditure in Budget
  • Revised Estimates,
  • Budgetary estimates. Revised Estimates gives the real situation of current year's income and expenditure.
  • On this basis what type of changes will arise in coming year, that information can be known from Budgetary Estimates.
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Question 232 Marks
How many sections are there in Budget ?
Answer
  • Budget is divided into mainly two sections :
  • Revenue income and revenue expenditure showing Revenue budget and
  • Capital Budget showing capital income and capital expenditure.
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Question 242 Marks
What is Budget ?
Answer
  • Budget is an annual accounting statement of the item-wise estimates of expected revenue and anticipated expenditure of the government for a new fiscal year.
  • Such budget n ect is presented by finance minister before implementing it. Permission is to be taken from the elected members of lok sabha, Vidhan Sabha, or local self government institutes.
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Question 252 Marks
Which are the non-tax income of central ?
Answer
  • Following income are included in Non-tax income of central
  • Interest income from advances given by government,
  • Profit and Dividend income from Public Enterprise,
  • Fees earned from public services and facilities,
  • Grant received from foreign countries,
  • Income from Union territories area.
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2 Marks Each - Economics STD 11 Commerce Questions - Vidyadip