1. What is a Government Budget?
A Government Budget is a statement of the estimated receipts and expenditures of the government for a financial year.
हिंदी: Budget = सरकार एक साल में कितना पैसा जुटाएगी और कहाँ खर्च करेगी –
इसका लिखित अनुमान और योजना।
2. Main Parts of Budget
- Revenue Receipts – income that does not create liability (tax, fees).
- Capital Receipts – loans, disinvestment etc. (creates liability or reduces assets).
- Revenue Expenditure – day-to-day expenses (salaries, subsidies).
- Capital Expenditure – creation of assets (roads, dams, schools, defence equipment).
3. Balanced, Surplus & Deficit Budget
- Balanced Budget: Receipts = Expenditure.
- Surplus Budget: Receipts > Expenditure.
- Deficit Budget: Expenditure > Receipts (common in developing countries).
4. Taxation – Direct & Indirect Taxes
Tax = Compulsory payment by people to the government, without direct return.
Types:
- Direct Tax – burden cannot be shifted; paid directly by person on whom it is imposed.
Examples: Income Tax, Corporate Tax. - Indirect Tax – burden can be shifted; collected by seller from buyer.
Examples: GST, customs duty, excise duty (older system).
हिंदी Trick:
Direct = सीधे व्यक्ति से (Income tax)
Indirect = सामान की कीमत में छुपा tax (GST)
5. Role of Budget in the Economy
- Resource mobilization (collecting money through taxes and borrowing).
- Redistribution of income (tax the rich, spend on the poor).
- Allocation of resources (development of priority sectors).
- Economic stability (controlling inflation/unemployment).
📘 Practice Questions (NDA Style)
1. Government Budget is a statement of:
a) Only receipts
b) Only expenditure
c) Receipts and expenditure for a financial year
d) Exports and imports only
2. Which of the following is a direct tax?
a) GST
b) Excise duty
c) Income tax
d) Customs duty
3. When government expenditure is more than its receipts, it is called:
a) Balanced budget
b) Surplus budget
c) Deficit budget
d) Capital budget
4. Capital expenditure of government refers to:
a) Day-to-day running expenses
b) Expenditure on creation of assets
c) Expenditure on salaries only
d) Expenditure on food subsidy only
5. GST is an example of:
a) Direct tax
b) Indirect tax
c) Wealth tax
d) Gift tax
a) Only receipts
b) Only expenditure
c) Receipts and expenditure for a financial year
d) Exports and imports only
2. Which of the following is a direct tax?
a) GST
b) Excise duty
c) Income tax
d) Customs duty
3. When government expenditure is more than its receipts, it is called:
a) Balanced budget
b) Surplus budget
c) Deficit budget
d) Capital budget
4. Capital expenditure of government refers to:
a) Day-to-day running expenses
b) Expenditure on creation of assets
c) Expenditure on salaries only
d) Expenditure on food subsidy only
5. GST is an example of:
a) Direct tax
b) Indirect tax
c) Wealth tax
d) Gift tax
Answers:
1 – c) Receipts and expenditure for a financial year
2 – c) Income tax
3 – c) Deficit budget
4 – b) Expenditure on creation of assets
5 – b) Indirect tax
1 – c) Receipts and expenditure for a financial year
2 – c) Income tax
3 – c) Deficit budget
4 – b) Expenditure on creation of assets
5 – b) Indirect tax
Quick Recap | सार
Now you should be able to:
- Recall the most important ideas of this topic.
- Solve typical NDA-style questions from this chapter.
- Spot and avoid common traps used in competitive exams.
Self-check: 3–4 random questions उठा कर देखिए – अगर आसानी से हो रहे हैं, तो chapter strong है।
Common Exam Mistakes | आम गलतियाँ
- Concept ठीक से clear न करना और सीधे रटने की कोशिश करना।
- Question पूरी तरह पढ़े बिना answer mark कर देना।
- Figures, dates, या formulas को last step में verify न करना।
NDA में smart strategy यह है कि आसान वाले सवाल पहले, doubtful बाद में – और silly mistakes से बचना सबसे ज़रूरी है।