Public Finance and Budget — Flashcards

Answer

Public Finance deals with the income, expenditure and debt management of the government. Key differences from Personal Finance: 1) Public finance relates to government finances while personal finance …

Answer

The statement of estimated income and expenditure of a year prepared by the government. It is a document showing the income and expenditure of the government. In India, the financial year runs from Ap…

Answer

Surplus Budget: When government's income is more than expenditure. Deficit Budget: When government's expenditure is more than income. Balanced Budget: When income and expenditure are equal. Developing…

Answer

1) Revenue Expenditure: Expenditure from revenue income sources for services, defence, administration, interest payments, grants to states. 2) Capital Expenditure: Money spent on creating new assets l…

Answer

Planned Expenditure: Government spending on developmental activities under various plans including financial services (agriculture, industry), social services (education, health), and general services…

Answer

The income collected by the government from various sources to meet its expenditure. It includes Revenue Receipts (actual government revenue from taxes and non-tax sources) and Capital Receipts (reven…

Answer

The government imposes higher tax rates on high-income groups and lower rates on low-income groups. The poor are exempted from income tax. Similarly, luxury goods used by the rich have higher tax rate…

Answer

A tax paid by the individual on whom it is imposed, and its burden cannot be transferred to others. Examples include Personal Income Tax, Corporate Tax, Wealth Tax, and Stamp Duty. The taxpayer direct…