Define government budget.
A government budget is a government document presenting the government's proposed revenues and spending for a financial year. It is a financial statement showing item-wise expected government receipts and government payments during a particular financial year. It also presents the government's report on the financial performance during the previous fiscal year.
Recently Government of India has doubled the import duty on gold. What impact is it likely to have on foreign exchange rate and how?
Is the following, revenue expenditure or capital expenditure in the context of government budget? Give reason.
(i) Expenditure on collection of taxes.
(ii) Expenditure on purchasing computers.
Define externalities. Give an example of negative externality. What is its impact on welfare?
