Public Finance And Budget — Chapter Summary

Public revenue refers to the income

Public revenue refers to the income collected by the government from taxes and non-tax sources. It is divided into tax revenue (like income tax, GST)

This is the money spent by

This is the money spent by the government on public services like education, health, infrastructure, and welfare schemes. It impacts economic growth a

When government spending exceeds income

When government spending exceeds income, it borrows money, creating public debt. It can be internal (from within the country) or external (from foreig

In India’s federal system

In India’s federal system, the Constitution divides tax powers between the Centre and States. The Centre collects more revenue and shares it with stat

A constitutional body formed every 5

A constitutional body formed every 5 years to recommend how tax revenue should be shared between the Centre and States, and to suggest grants-in-aid.