Economics · Class 11 Commerce
Ch 10Budget — Class 11 Economics, concept-first.
Just as a household plans how much it will earn and how much it can afford to spend in a year, a government must plan its own income and spending in advance. A government budget is a detailed statement of the estimated receipts and estimated expenditure of the government for a coming financial year (in India, 1 April t…
Key concepts
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Government Budget: Meaning and Objectives
A government budget is an ex-ante (forward-looking) statement of the government's estimated receipts and estimated expenditure for the coming financial year (1 April to 31 March in India), presented to the legislature be…
Most relevant Q&A
In previous exams
How often this chapter’s concepts have been examined — real appearance data, never estimated.
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Meaning and Objectives of a Government Budget
Just as a household plans how much it will earn and how much it can afford to spend in a year, a government must plan its own income and spending in advance.
Revenue Budget: Revenue Receipts and Revenue Expenditure
The government budget is divided into two parts — the Revenue Budget and the Capital Budget. This section covers the revenue side.
Capital Budget: Capital Receipts and Capital Expenditure
The other half of the budget is the Capital Budget, covering transactions that affect the government's assets and liabilities.
Budget Deficit: Meaning and the Revenue Deficit
When a government's total expenditure exceeds its total receipts in a given year, the budget is said to be in deficit.
Fiscal Deficit and Primary Deficit
Fiscal Deficit is the most widely quoted deficit measure, because it captures the government's total borrowing requirement for the year:
Fiscal Policy: Meaning, Instruments and Objectives
Fiscal policy is the deliberate use of government revenue (mainly taxation) and government expenditure to influence the level of economic activity, employment, prices, and growth in the economy.
Summary: The Budget at a Glance
This chapter has built the full picture of how a government budget is structured and assessed, a core topic for the Gujarat Secondary and Higher Secondary Education Board (GSHSEB) Std 11 Economics exa…
Exercises
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- Q6Explain the meaning of a government budget and state any four of its objectives.Free
- Q7Distinguish between Revenue Expenditure and Capital Expenditure, giving two examples of each.Free
- Q8Distinguish between Revenue Receipts and Capital Receipts, giving two examples of each.Free
- Q9Which of the following is NOT a revenue receipt? (a) Income tax collected by the government (b) Dividend received from a public sector under…Preview
- Q10"The Fiscal Deficit indicates the total borrowing requirement of the government." Explain this statement.Preview
- Q11Distinguish between Fiscal Deficit and Primary Deficit. What does a zero Primary Deficit imply?Preview
- Q12Explain the meaning of fiscal policy and state its main instruments.Preview
- Q13State any two objectives of fiscal policy in the context of the Indian economy.Preview
More questions
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- Example 1In a particular year, a state government's Revenue Receipts are ₹800 crore (Tax Revenue ₹600 crore + Non-Tax Revenue ₹200 crore) and its Rev…Free
- Example 2A government's Total Expenditure for the year is ₹1,200 crore. Its Revenue Receipts are ₹800 crore, and its Non-Debt Capital Receipts (Recov…Free
- Example 3Continuing from the previous example, the government's Interest Payments for the year are ₹120 crore. Using the Fiscal Deficit calculated ab…Preview
- Example 4Classify each of the following items as a Revenue Receipt, Capital Receipt, Revenue Expenditure, or Capital Expenditure: (i) Corporation tax…Preview
- Example 5From the following budget data (all figures in ₹ crore), calculate the Revenue Deficit, Fiscal Deficit, and Primary Deficit: Tax Revenue = 5…Preview