Class test government budget grade 12
1. Why is interest termed as a revenue receipt? (1)
2. Suppose you are a member of the "Advisory Committee to the Finance Minister of india'. The Finance Minister is concerned about the rising Revenue Deficit in the budget. Suggest two measures to control the rising Revenue Deficit of the government. (2)
3. Write the difference between revenue expenditure and capital expenditure. (3)
4. Identify the following as a part of government budget.
- Proceeds from disinvestment.
- Repayment of loans
- Amount borrowed from UK repaid
- Mobilisation of savings through NSC, KVP, etc.
5. The government budget of a hypothetical economy presents the following information. What will be the value of Budgetary Deficit, Fiscal Deficit, Primary deficit, Revenue Deficit? (4)
A. Revenue Expenditure = 7 25,000 crores.
B. Capital Receipts = 7 30,000 crores
C. Capital Expenditure = 7 35,000 crores
D. Revenue Receipts = 7 20,000 crores
E. Interest Payments = 10,000 crores
F. Borrowings = 20,000 crores
6. Identify the 'Objectives of Government Budget'from the following statements and explain them. (4)
(i) Government increases taxes on liquor.
(ii) Government increases its own expenditure during deflation to increase aggregate demand.
(iii) Government increases taxes on super rich people.
(iv) Government increases expenditure on infrastructure.
7. Define Non debt creating capital receipts .
8. State any two features of public goods. (2)
