class-1
Objectives:
- Reallocation of resources: Through budgetary policy, Govt. try to achieve economic and social priorities through: Tax Concessions or subsidies, Produce goods or services.
- Reducing inequalities in income and wealth:
- Economic stability: Prevent Fluctuations. During inflation-deficit budget, When Deflation- Surplus Budget.
- Management of public enterprise:
- Economic Growth: For increase saving and investment, Gov. try to raise investment & saving.
- Reducing regional disparities: Through taxation & expenditure policy try to encourage new units in backward areas.
Non Tax Revenue: Sources
Base | Revenue Receipts | Capital Receipts
|
Meaning | ||
Nature | ||
Future obligation | ||
Examples |
- Loan From World Bank
- Corporate tax
- Income Tax
- Grants from world bank
- Profits of public sector undertakings
- Sale of public sector/Disinvestment
- Foreign aid against flood victims
- Dividends on investment made by Govt.
- Borrowing from public
- Fee of govt. college
- Recovery of loan
- Interest received on loans
Base | Revenue Expenditure
|
Capital Expenditure
|
Meaning | ||
Purpose | ||
Nature | ||
Examples |
- Subsidies
- Defense capital equipment purchased from foreign
- Grants to UT
- Construction of school building
- Repayments of loan
- Expenditure on collection of taxes