This financial statement includes the revenue receipts of the government i.e. With the help of Notes, candidates can plan their Strategy for particular weaker section of the subject and study hard. 2. To know more, stay tuned to BYJU’S. Components of Government Budget Revenue Budget. © 2020, Arinjay Academy. 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. Jan 07, 2021 - Chapter 12 - Budget - Chapter Notes, Macro Economics, class 12 | EduRev Notes is made by best teachers of Commerce. (i) Plan Expenditure. Government raises loans from the market, Reserve Bank of India foreign governments and other bodies. Depending on the feasibility of these estimates, budgets are of three types -- balanced budget, surplus budget and deficit budget. 4. The above mentioned is the concept that is explained in detail about Government Budget – Meaning and its Components for the Class 12 Macroeconomics students. {id} Review Overall Percentage: {percentAnswered}% Marks: {marks} {index} … 1. A government budget is said to be a surplus budget if the expected government revenues exceed the estimated government expenditure in a particular financial year. Revenue Expenditures Capital Budget… 1. For example : expenditure agriculture and industrial development. Funds raised from ‘disinvestment’. Welcome to EconomicsDiscussion.net! In this, receipts are not equal to expenditures of the government. Revenue deficits are defined as the excess of revenue expenditure over revenue receipts. Income Equality - Government uses a budget as a tool for reducing income inequality. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. Budget impacts an economy at three levels: (a) Aggregate fiscal discipline level, i.e., an ideal balance between revenues and expenditures of the government. Definitions of Budget. Some of the topics you can prepare your project on are listed below. Candidates who are pursuing in Class 12 are advised to revise the notes from this post. A government budget is a government document presenting the government s proposed revenues and spending for a financial year. Development and Non-Developmental Expenditure. It explains how revenue is generated or collected by the government and how it is allocated among various expenditure heads. (iii) Forefeitures. Government Budget and the Economy Contents of the Chapter:-• Government Budget – Meaning, Objective • Components of Government Budget • Classification of receipts – Capital and revenue • Classification of expenditure - Capital and revenue • Balanced budget surplus budget, deficit budget - meaning and implication (ii) Administrative Revenue that arises from administrative function of the government. Fiscal Deficit : Meaning, Measurement and Implications. Disinvestment government may choose to sell its existing shares in public sector enterprises. A government budget is a year-long country’s financial report explaining item-wise calculations of future revenue and expenditure. 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