9 Basic econmics Budget

 Qts 1.  Explain evolution of the term  Budget

The term Budget is actually derived from a French word Bougette, which means a sack or pouch. It was first used in France in 1803. 

Qts 2. Explain Annual Financial Statement 

Annual Financial Statement under Article 112 comprising the revenue budget, capital budget and also the estimates for the  fiscal year 

Qts 3. What is  Revenue Budget

 The revenue budget are all current receipts such as taxation, surplus of public enterprises and expenditure of the governments.

Qts 4.  What is Capital Budget

The capital budget are all capital receipts and expenditure such as domestic and foreign loans, loan repayments, foreign aid

Qts 5. What is Tax Revenue

 It includes taxes such as Customs duties, Excise duty, service tax, income tax and so on. 

Qts 6. What is Direct taxes

Direct tax paid by person for his salary or rent or or any income

Qts 7. What is  Indirect taxes

Indirect taxes are those taxes which are paid by someone who shifts the burden of the tax on some other person.  Example : GST 

Qts 8. What is Progressive tax

Higher the income , higher the tax and lower the income lower the tax

Qts 9.  What is Regressive Tax 

Fixed tax  irrespective of income Example GST

Qts 10. What is Personal Income Tax 

Personal income tax is generally imposed on an individual combined Hindu families and total income of people of any other communities.

Qts 11. What is Corporate Tax 

It is tax on business profit of a registered companies 

Qts 12.What is Customs Duties

It is tax on import and export

Qts 13 What is Import Duties

Import duties imposed on imported goods 

Qts 14 Export Duties

Export duties imposed on exporting goods 

Qts 15 What is the difference between Excise Duties and Custom duties 

Exercise duties imposed on goods sold with in the country Example GST

Custom duties imposed on goods sold in foreign countries 

Qts 16 Explain Plan Expenditure 

It includes the outlay for agriculture, rural development, irrigation and flood control, energy, industry and minerals, transport, science and technology, environment and economic services, etc.

Qts 17  Explain  Non-Plan Expenditures

The major non-plan expenditures are Interest Payments, Defence, Subsidies, and General services.

Qts 18 Explain  Internal debt

 It comprises of loans raised from the open market with in the country. Government borrows money from the general public or  from any financial institution or the RBI

Qts 19  Explain  External debt

 It consists of loans taken from the World Bank, IMF, ADB and individual countries like the USA, Japan and others

Qts 20 Explain   Revenue Deficit

 Revenue Deficit  = Revenue Expenditure - Total Receipts ie Revenue receipt  + Capital receipt

Qts 21 Explain Budget Deficit

Budget Deficit= Total expenditure - Total Receipts or (Revenue Receipts + Capital Receipts) - 

Qts 22 Explain  Fiscal Deficit

Fiscal Deficit= Revenue Receipt (net tax revenue + non-tax revenue) + Capital Receipts (only recoveries of loans and other receipts) - Total Expenditure (plan and non-plan)

Qts 23 Explain  Primary Deficit 

Primary Deficit= Revenue Deficit - Interest Payments