During Deficit, Economics activities are at a low level. it results in unemployment, business loss and even bankruptcy and inflation etc. the government can borrow money and increase the expenditure on public works through deficit financing. This will increase employment and total effective demand for the goods and also the services which would then encourage investment. thus, a deficit budget is useful for removing depression and unemployment.
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Question
Give reasons or Explain the following statements. (Any Three)
During the [eriod of depression deficit budgets is used.
Solution
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Components of Budget
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|
2019-2020 वास्तविक Actuals |
||
| 1. | Revenue Receipts | 1684059 |
| 2. Tax Revenue (Net Tax Revenue) | 1356902 | |
| 3. Non-Tax Revenue | 327157 | |
| 4. | Capital Receipts | 1002271 |
| 5. Recovery of Loans | 18316 | |
| 6. Others Receipts | 50304 | |
| 7. Borrowings and Other Liabilities | 933651 | |
| 8. | Total Receipts (1 + 4) | 2686330 |
| 9. | Total Expenditure (10 + 13) | 2686330 |
| 10. On Revenue Account | 2350604 | |
The percentage change in the Non-Tax Revenue, between 2019-20 (Actual) and 2020- 21(Budgeted Estimate), taking 2019-20 as base, would be ____________.
|
2019-2020 वास्तविक Actuals |
||
| 1. | Revenue Receipts | 1684059 |
| 2. Tax Revenue (Net Tax Revenue) | 1356902 | |
| 3. Non-Tax Revenue | 327157 | |
| 4. | Capital Receipts | 1002271 |
| 5. Recovery of Loans | 18316 | |
| 6. Others Receipts | 50304 | |
| 7. Borrowings and Other Liabilities | 933651 | |
| 8. | Total Receipts (1 + 4) | 2686330 |
| 9. | Total Expenditure (10 + 13) | 2686330 |
| 10. On Revenue Account | 2350604 | |
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| A. | It does not create assets for the government | a. | fiscal deficit |
| B. | It results in the creation of assets. | b. | Revenue expenditure |
| C. | It is the excess of total expenditure over total receipts. | c. | Capital expenditure |
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The Centre on Saturday increased the budgetary allocation for the environment ministry from last fiscal by nearly five percent for 2020-21 with no change in the amount allotted to pollution abatement and climate change action plan. Union Finance Minister, Nirmala Sitharaman, allocated ₹3,100 crores for the ministry out of which ₹460 crores were allotted to control pollution, which is the same as the money it received in the last budget. Control of pollution has been conceptualized to provide financial assistance to Pollution Control Boards/Committees and funding to National Clean Air Programme (NCAP). Similarly, the budget for pollution abatement, which was cut by 50 percent last year from 2018-to 19, remained unchanged at ₹10 crores. The minister also announced that states, which are formulating and implementing plans for ensuring cleaner air in cities above one million population should be encouraged.
- Budget 2020: Allocation for Environment Ministry up 5% to ₹3,100 crore - Business Standards, 1st February 2020
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