NCERT Solutions Class 12 Economics Government Budget and the Economy

NCERT Solutions Class 12 Economics Government Budget and the Economy with answers available in Pdf for free download. The NCERT Solutions for Class 12 Economics with answers have been prepared as per the latest syllabus, NCERT books and examination pattern suggested in Standard 12 by CBSE, NCERT and KVS. Solutions to questions given in NCERT book for Class 12 Economics are an important part of exams for Grade 12 Economics and if practiced properly can help you to get higher marks. Refer to more Chapter-wise Solutions for NCERT Class 12 Economics and also download more latest study material for all subjects

Government Budget and the Economy Class 12 NCERT Solutions

Class 12 Economics students should refer to the following NCERT questions with answers for Government Budget and the Economy in standard 12. These NCERT Solutions with answers for Grade 12 Economics will come in exams and help you to score good marks

Government Budget and the Economy NCERT Solutions Class 12

NCERT Solutions Class 12 Economics Government Budget and the Economy. NCERT book for Economics in class 12 is strongly recommened by teachers and the CBSE and NCERT boards. Please download the NCERT solutions for class 12 Economics free in PDF made by teachers of the best schools in India. These solutions are carefully compiled to give detailed understanding of the concepts and also steps of solutions. The NCERT solutions are free to download in pdf format. Please refer to the download link below to download the pdf file and also refer to other chapters and subjects to get the solutions to Economics NCERT book questions and exercises

Government Budget and the Economy

Question 1. Explain why public goods must be provided by the government? [3-4 Marks]

Answer: 1. Public goods are those goods and services for which consumption by some individuals does not reduce the amount available to others.

2. For example parks, roads, water, bridges, national defence etc..

3. These goods are non-rival and non-excludable ones.

4. People receives benefits from public goods but do not pay for them. Such a goods can only prepared by government.

Question 2. Distinguish between revenue expenditure and capital expenditure . State the basis of classifying government expenditure into revenue and capital expenditure. Give an example of each.

Answer:

Class_12_Economics_Government_Budget_the_Economy

Question 3. The fiscal deficit gives the borrowing requirement of the government Elucidate. [3-4 Marks]

Answer:1. Fiscal deficit is defined as excess of total expenditure over total receipts (revenue and capital receipts) excluding borrowing. In the form of an equation:

Fiscal Deficit = Total Budget Expenditure – Total Budget Receipts (Net of borrowing) = Total Expenditure (Revenue

Expenditure + Capital Expenditure) – Revenue Receipts (Tax Revenue + Non-Tax Revenue) – Non-Debt Capital Receipts (Recovery of Loans + Dis-investment Proceeds)

= Revenue Deficit + Capital Deficit (excluding Borrowing)- Borrowing

= Net borrowing at home + Borrowing from RBI + Borrowing from abroad

2. Fiscal deficit shows total borrowing requirements of the government from all sources.

3. As the government borrowing increases, its liability in future to repay loan with interest also increases leading to a higher revenue deficit. Therefore, fiscal deficit should be as low as possible.

Please click on link below to download NCERT Solutions Class 12 Economics Government Budget and the Economy.

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