Difference between fiscal deficit and revenue deficit. Revenue Deficit = Revenue Expenditure – Revenue Receipts (iii) Generation of Employment Important Points of Government Budget • Budget is prepared by government at all level i.e, central government state government and local government prepare its respective annual budget . However, we restrict our studies to budget of central government known as Union Budget. (i) Huge expenditure on administration and maintenance. Taxes … My earnest request to the Principals and teachers is to ensure that this resource … Free PDF download of Class 12 Macro Economics Chapter 5 - Government Budget and the Economy Revision Notes & Short Key-notes prepared by our expert Economics teachers from latest edition of CBSE(NCERT) books. (Delhi 2013) (Delhi 2011) With the help of Notes, candidates can plan their Strategy for particular weaker section of the subject and study hard. As you all know the subject of Economics is split in 2 parts one of which is Micro Economics (Indian Economics Development) and other is … Economics Project on Government Budget – Class 12 CBSE. 4 Marks Questions. Expected expense > Expected revenue.. 2.Measures of Budgetary Deficit It includes revenue deficit, fiscal deficit and primary deficit. (All India 2013) or Give example also. Introductory Macroeconomics Subject Chosen. Revenue Receipts  Receipt which neither create liability nor lead to reduction in assets are called revenue receipts. For the sake of the candidates we are providing Class 12 Mock Test / Practice links below. (i) High revenue deficit shows accumulated and recurring expenses of government such as expenses on defence, payment of interest, etc. Important Questions with Answers for CBSE Class 12 Economics Chapter 5 – Government Budget and the Economy which is outlined by expert Economics teachers from the latest version of CBSE (NCERT) books. Difference between fiscal deficit and primary deficit, 7. What is revenue deficit? What is fiscal deficit? 1 st April to 31 st March. Explain the concept of fiscal deficit in a government budget. (iii) Financial burden on citizens (iii) High level of inflation due to high government expenditure. Revenue Deficit When the revenue receipts are less than the revenue expenditures in the government budget, this short fall is known as revenue deficit. (a) Revenue Deficit = Revenue Expenditure – (Tax Revenue + Non-tax Revenue) Q. (b) Indirect Tax Fiscal deficit is the difference between the government’s total expenditure and total receipts excluding borrowings. (All India 2010) (i) Revenue receipts and capital receipts Sources of Financing Fiscal Deficit The two main sources are : Free PDF download of Class 12 Macro Economics Chapter 4 - Determination of Income and Employment Revision Notes & Short Key-notes prepared by our expert Economics teachers from latest edition of CBSE(NCERT) books. The CBSE class 12th Economics board examination is all set to be held on the 13th March 2020 at 10:30 am in the morning until 1:30 pm. (iii) Higher inflation.\ (Delhi 2010,2008C) (iv) High revenue deficit implies high future burden of loan and interest payments on the government. To get fastest exam alerts and government job alerts in India, join our Telegram channel. How is primary deficit calculated? When the revenue receipts are less than the revenue expenditures in the government budget, this shortfall of receipts is known as revenue deficit. (i) Revenue Deficit = Revenue Expenditure – Revenue Receipts =100 -80 =Rs. What is a Government Budget. (i) Revenue deficit From the following data about a government budget, find Class 12 Economics: Macroeconomics – Government Budget and Economy – Get here the Notes for Class 12 Economics : Macroeconomics – Government Budget and Economy. 7. = 32-20 (iii) Primary deficit The difference between fiscal deficit and interest payments is termed as primary deficit.