CBSE Class 12 Economics Capital receipts

Read and download CBSE Class 12 Economics Capital receipts in NCERT book for Class 12 Other Subjects. You can download latest NCERT eBooks chapter wise in PDF format free from Studiestoday.com. This Other Subjects textbook for Class 12 is designed by NCERT and is very useful for students. Please also refer to the NCERT solutions for Class 12 Other Subjects to understand the answers of the exercise questions given at the end of this chapter

NCERT Book for Class 12 Other Subjects Capital Receipts

Class 12 Other Subjects students should refer to the following NCERT Book Capital Receipts in Class 12. This NCERT Book for Class 12 Other Subjects will be very useful for exams and help you to score good marks

Capital Receipts NCERT Book Class 12

UNIT 9

Capital receipts and revenue receipts

Capital receipts are receipts that either create a liability (for example - borrowings) or reduce asset (for example disinvestment of PSU).

Revenue receipts are receipts that neither create any liability nor reduce any asset. Tax revenue or non tax revenue are revenue receipts as they neither create any liability nor reduce any asset. Capital expenditure and Revenue expenditure

Any expenditure by the government that either creates an asset (for example construction of school building etc) or reduces a liability (for example repayment of loan) is categorised as capital expenditure

Any expenditure by the government that neither creates an asset nor reduces a liability is catagorised as revenue expenditure, (for example interest payment, subsidies, grants given to states even if some of these may be for creation of assets).

Developmental and Non-developmental expenditure

Expenditure of the government on essential general services like defence, administration etc, is treated as non-developmental expenditure. Expenditure of the government on agricultural, industrial development, on economic and social infrastructure, scientific research etc, is treated as developmental expenditure.

Balanced Budget : It is a budget in which estimated receipts equal estimated expenditure

Surplus Budget : It is a budget in which estimated receipts exceed estimated expenditure,

Deficit Budget: It is a budget in which estimated receipts fall short of estimated expenditure,

Note : Estimated receipts are net of borrowings.

Implications of fiscal deficit.

The extent of fiscal deficit is an indication of how far the government is liviing beyond its means. Fiscal deficit is the amount of borrowings the government has to resort to meet its expenses. A large fiscal deficit means large amount of borrowings. This creates a large burden of interest payment and repayment of loans in the future. A large fiscal deficit may also be inflationary.


Please refer to the link below for - CBSE Class 12 Economics-Capital receipts

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Other Subjects NCERT Book Class 12 Capital Receipts

The above NCERT Books for Class 12 Other Subjects Capital Receipts have been published by NCERT for latest academic session. The textbook by NCERT for Capital Receipts Other Subjects Class 12 is being used by various schools and almost all education boards in India. Teachers have always recommended students to refer to Capital Receipts NCERT etextbooks as the exams for Class 12 Other Subjects are always asked as per the syllabus defined in these ebooks. These Class 12 Capital Receipts book for Other Subjects also includes collection of question. We have also provided NCERT solutions for Class 12 Other Subjects which have been developed by teachers of StudiesToday.com after thorough review of the latest book and based on pattern of questions in upcoming exams for Class 12 students.

NCERT Book Class 12 Other Subjects Capital Receipts

The latest NCERT book for Capital Receipts pdf have been published by NCERT based on the latest research done for each topic which has to be taught to students in all classes. The books for Class 12 Other Subjects Capital Receipts are designed to enhance the overall understanding of students. All Class 12 NCERT textbooks have been written in an easy to understand language which will help to enhance the overall level of Class 12 students. 

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Class 12 Capital Receipts NCERT Book Other Subjects

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