—GovernMENT Bupa eT, AND THE ECoMoMmy M1, Delme Govt Budget Anes Giovk badgel is an annual. Statement. chawing itarawige estimales of Mecuipls and — expenditure during_a Fistol yur. G2. Leplain the. Various objectives of Grovts Aud gel Mus) \Obgectives of Govt. Budge. [Reallocation of Resources : cIhrovgjh the Audgetary- policy, — i Giovl auns Lo veallocate, vesourcs_in_acordanc with the. (economic ond social priorities of the Country. Govt: can__ | im {luencs, allocation of ies ours through: (Dively producing goods _and_Servias.:- 74 private Sector does nut taka. interest, govt: Can directly ondsrtoke __ Ine. production —— di tax _Conassions ow subsidies !- Jo_encurege investment. Govt Can give 41a% Concession, subsidies_etc. to the produans. For exampte, Govt- discourages the praduction_ot haxmfol.__ Consumption goods Clike. liquor, Cigavattes otc.) through. heauy. taxes and encourage the _Use_ob* Khadi_ products’ chy: providing subsidies Reducing. imeguolities in_income ond wealth: Economic quolity if an inberant port of every economic system Govt: aims to Keduce such inequalities of income ond. Wealth: Govt. imposes heovy taxes _an the rich oF the goods purchased -by- the. _hich_and_ spends. more onthe Welfare of the poor. Jt will _Meduct_income. of the_tich— and_Wwaise.Standord__ob_Livingob the poor, ‘thus _taducing income -__ Linequatities.in_the_distri bution_o: ee Economic Stability. Govt budge is. uSed._to_prevent. “business ifluctuations_ob_Inflotion_at._desl _to_athieve_the otbgective. - Cor). > Detine ato: EE so Ams Tax_Hevenut prefers to sum otal ]_recipts fram taxes_and 9 —_Lother_duties_imposed ay the gout 3p —_LTax_is a Campulsorg- payment made by people_and Companizs. 10th govt- without meference_to_ang.divect. Avenefit: in ketum: > ee DB —8EL_Distinguish_metween Direct toxes_and_Andireck tox - w@_Aus!. Comporison Between. Direct taxes. and Indirect. toxes:: » ee > Dirac taxes Tndired taxes > Direct taxes_ave tevied | |* Indirect taxes_are_tevied_on. —$aads_.and Servias._ |a- The. burden. indivect —____ | tax Can ae. shigteds 19- they ave Generally. )napartional. [Pin snatesva: sia cteneaii i |: They. Srave.a cide Coverage of 1 (=)SZ Explain adth the Hep ob suitable examples Lhe basis ~—}of Classifying taxes inte direc and indirect taxes: s AMSA tax ie a direct tax. if ils shurden Cannot && pShiFteds pte Atheas. for example, income tor is a direct impact and — incidence. on Lhe same. parson: . nindivect tax, if ite hardin can he chitted — duniple.,sales_tax_is_an_indivect_vax_as_its_impact ————and_incidenc._is_on_aifferant__persons. —«.8:| wnat _is_non. tax _Mevenas ?fplain_aisloant SOUTLLS. as —L0f_mon. tox _Wevenues ——Alns|_Non..tax_Nevenut: + Income fram_sourtes_other_than - tax. evenac Is called _non- tox _bevenue: The maxn_Sourcu_of Interest - Government_tereives_intarest_on_toans_ given __* ————-by_it __to_stote gout, union territories. Privete enterprises —-—-_and__generat__public» Interest tweceived from these Loans ____ ——Lis_an_imp: source af mon- tax_tovenus - _ _2:_protits ond Dividends '- Gout: earns_| posit through. public “seco” Onder takings Like Indian Railways. Lr, BHEL, SAIL, NTPC, MMTC, TOC, CIL, ONGC. etc: Gout: also gets dividend from investment. made Dy it — —_— ___B fees Gout gets. incom@.though nominal by different > kinds of fees _charged__-by-_it- for example, Tuition fee. tin. schools, Driving Jianst fees, Land. vepistration_fees.ete-__ == 4: | Licensa fee” Tt _is_a. -paymant_charged_-by-govt-t0__ _grant._psrmissianfor Something... fax exaraple,_licanse_fer__ | bala _for_permission_of _keeping_a_gun_ot +0 obtain {wational_parra i ~ Those. tho. ytaa) breakers._ainbis Ping ed Light et. Panolty for non-payment of tax: —— —Ecfstheats : Ik veto to cloim ot the govt_on_iht_ property fok_a_pe oO Parson who dies witbout._leaving behind any —legat— —Aeiy ora will. 3 forfeitures: “These _ave_in the form ob_penaltieslnich_are. Fimpased ay coy the Courts for_non: Compliance. _of_ordes_ats non: —Holfilment of Contracts ete ——8-Giitts_ang__dronte:- Govt: veceivas gists _ond_grants_fram_ foreign governments _and_imternetianalorgonisations. such _igibts_and_grants_ore. jenerally received during mationat Crisis + Such_as_uiav. Hood_ete-___ Bsr oscssman 1 ete se bynes ate ya r rites onan, Dave Bar_teovgl it tale 2 fot »>——__neor a. Metra_station fras._in. created, then apart ot developer y———ta_expenditare _is_tecovered from. qumexs_ot Seth property in yt foro sheciat.. assessment = p82 —Uthat_one_capitat _toceipts 2 Explain its Souyeec, CopitoL Recwipts'. Tk keferta.thore vaceipts which oither Create 4. tiobilitg. or. Couse a _veduction in the assets o% 5 BBE Aateign govern manis.nterne tional_institutions ete - Borrowings ore Copitat_teceibts aS they Create a_ Liability forthe gout i = a Recovers | of Laans!. Govt: dvants Various loans to state gavern- > 5 ae i mants_or Onion_texxitories: et eae is_a_Capitat » 10f1— = ( Disinvestment. i= Tt beters_to “the act ob Selling ¢ _ ort oF the Whole ot .Shares_o# Selects ee va_as oi | - t ondertoxings eld _g. govt.—The Ore Meceipts oS _theg. reduce. the _ascots of 4 4 |_Srmait_Souingis Tk _Wefey “te_fmds_waised from—tht——— —— Sie in ema form of past ptice Aeposits.nsc-K¥P — __| ete: They are treated “as capital receipts as they lead. — | t0_an__incxeaseiin_Liahilitg————_____————_¢ | 7 ~ ~ ‘ —at9:| ‘Distinjuish -hetween Revenue Gecupts and Capita Resipts — ‘ Cornparisan between “Revenut _Recetpts—and.Capitas. Receipts. ——§ , | Revenue Recexpts Capitol Resipts “neither Create | 1 they either Craate_ang—tiabilty ang. “iobitity. mor educe | _are—_Heduce ang —asset_ot-tt— Lang. ossets_ob the gout-| _ 2; they. ave _eguilay_and— 3 Mecurring. in __matore- | There is _no_tuture Qmaunt—_______—-} __u | examples ore: ____| 1 Jax_Revenue, and | Non. tax Nevenut. t . Moy _weduccs ang. asset- for_éx!: Incom: ipt isa Capitat_weasbt, it it Creates 0 Liobility. ob ay +. borrowing41s) i 2 . ot : Budget_expenditore 2 Explain ee eae Tt__rofers to the estimated exp of the. Gouk—doring_o Sivan fiscal _yeor- Budd: ito: be —LCatayorised aa: _ = Beli expeniiiaae 5 Ravenut Exh: Tk Wefess. to the exp: which _meithed» Crantis_aniy- ——+A880b_tor Pauses eduction in_any_tionility- 4) the Foub- Ore. ~fasymant.4)Salariea, pensions. interests,_exp:on_administrative — Sends _defena _servies, Realth sewias, grants to state ete. ——§ Ul; Copitod _€xps It weters to the_oxp. Which sither_Creates_anaset : Causes a _waduction in the Jiabilities of the govt- For gx. Expenditure on fuilding. roads. flyovers, purchase d|_machinery.— —hepaymant ¢|_ Joan ote. 7 oo 13- Distinguish between Revenue Exbanditure_and Capital Exp: _ Comparison _Apetween Revenut._éxb-_and_Capitat. Erb « : Revenue Expanditure Copitat Expenditure |. _Jk neither createn_ang-| |: Jt either Grates an asset asset ror reduces ang |" ow reduces a_tiabilitg-. of the __tiabitlty of tho_gout-____|_gavt - _ ge Tt is incurred __for_.&:-Tt_ is _Incorred_ amadnly. far onmat..Kenning. ob | acquisition assets : ____: out: departments and _ = = provisic vr vi nt —_———_: : 7 3g. Tt is_ecurring_in_nature} 2 tis mon: _becusring. in nature tk is a short term oxp| 4 Ie is _a__tong herr exp... ___ Exomples:-Salary _|5> Examples: Repayment. a = i |_ horvoanngs. __.£xb-an Construction. of School. is Jing. Bridge, Defence apite ejuipment. metro. Fly overs etState the Baais a Classifying. jovt- exp- into revenue ond Capitat exp: Give an exam pled)_eath.. An exp. is Mevenus. exp: ib it neither _Creates_a asset mor _weducen any Gadbility For xs pension" An _oxp- is & Lopitar expe ik tt elther_creates an_ass = at ~Medues a _tiability « forex Repayment _Yoan-___ (idhat are ane main Jpbes_c)_Govt Gud jek. 2. Explain. 7 —Giout: budge ts said_to chea.surplus ated —-Govk:_veceipts ave max. than tha j1t—indicates_tha__imability, of the govt. ta mest ite -{Hogulay and__Necurring exp. ‘the_propased.-budget.. lat implies that govt-_is dissaving» ie _gove. ig ing—eb_sovings oF other sectors os the_economy to _its_Consumption exp