According to Tayler, "Budget is a financial plan of government for a definite period". Government raises loans from the market, Reserve Bank of India foreign governments and other bodies. According to Rene Stourm, "A budget is a document containing a preliminary approved plan of public revenues and expenditure". Economics Project on Government Budget and Its components. Penalty imposed by the court for non – compliance orders. This is a descriptive chapter on government budget of Indian economy, wherein its objectives, importance, types, components, budget deficits and its types (Revenue, Fiscal, Primary Deficit) and their implications are studied. (b)        Government borrows from rest of the world. After doing this course you'll learn it's objectives and components namely revenue budget and capital budget. 1. Raising Government Revenue Government should take steps restore balance between direct and indirect taxes. Components of Government Budgeting in India. Thus, a deficit budget implies increase in government liability and fall in its reserves. The Budget is passed by the government in parliament every year . The Annual Financial Statement is the Budget is divided into Revenue and Capital. Basics of government budgeting: Government Budgeting– NIOS Material – Very good source. The budget also divides authorized expenditure into that which can be carried out without action by Congress and that which … 2. To know more, stay tuned to BYJU’S. Fees: Fees refer to charges imposed by the government to cover the cost of recurring services provided by it. Class - 12; Economics; The Government: Functions and Scope ; Government Budget and its Components; Government Budget and its Components Watch Government Budget and its Components explained in the form of a story in high quality animated videos. Primary deficit indicates borrowing requirements of the government to meet deficit net of interest payments. Primary Deficit = Fiscal Deficit – Interest Payments. (ii) Capital Expenditure. Through the budget, the government charges higher tax from the rich class of the society and spends it on the poor section of the society. Revenue Budget. 4 docs 8 tests. 4. CLASS - XII (2019-20) Theory: 80 Marks 3 Hours Project: 20 Marks Units Marks Periods Part A Introductory Macroeconomics National Income and Related Aggregates 10 28 Money and Banking 6 15 Determination of Income and Employment 12 27 Government Budget and the Economy 6 15 Balance of Payments 6 15 40 100 The Budgetary Process NCERT Class XII – Macroeconomics (Chapter 5) Differences between Direct and Indirect Taxes of India . One where estimated revenue is less than estimated expenditure. Structure or components of a government budget broadly consists of two parts—Budget Receipts and Budget Expenditure as shown in the following chart with their classification. 1. A government budget is a document prepared by the government and/or other political entity presenting its anticipated tax revenues (Inheritance tax, income tax, corporation tax, import taxes) and proposed spending/expenditure (Health care, Education, Defence, Roads, State Benefit) for the coming financial year. Balanced budget theory states that an increase in government expenditure which is financed by equal amount of tax leads to an increase in income (or aggregate demand) equivalent to the amount of government expenditure (or tax). This course is all about the Government budget, its receipts and expenditure and different budget deficit from class 12 Economics. Disinvestment government may choose to sell its existing shares in public sector enterprises. Objective of the Government Budget The objective that are pursued by the government through the budget are-I. (iii) Forefeitures. Balanced Budget multiplier defined as the ratio of increase in income to increase in government expenditure financed by taxes. Administrative budget; Current and capital budget; Cash and unified budgets; Program budgeting and zero-base budgeting; Full-employment budget; Value for money measurements; Budgetary planning: cash, volume, and cost terms; Components of the budget. What is Government Budget? REVENUE DEFICIT : MEANING, MEASUREMENT AND IMPLICATIONS. Results for pdf Class XII Macroeconomics Government Budget and the Economy Download CBSE NCERT Economics Important. Also, we will learn the concept of allocation and distribution function. Components of Government Budget:-1. Budget expenditure is the expense which the government incurs for its own maintenance as also for the society and the economy as a whole and includes expenditure of the central, state and local governments on various social, economic and political activities in the country to promote public welfare. 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