Revision Notes For Class 12 Economics Macroeconomics Chapter 5 Government Budget And The Economy

Government budget plays a vital role in the economy. Basically, government budget is the annual statement that shows receipts and expenditures of a financial year. This chapter comprises of broad concepts – meaning of government budget and its objectives, public goods, revenue receipts, capital receipts, revenue expenditure, capital expenditure, plan expenditure, non- plan expenditure, deficit budget, measures to reduce fiscal deficit, discretionary fiscal policy.

Frequently asked Questions on CBSE Class 12 Macroeconomics Notes Chapter 5: Government Budget and Economy


What are the benefits of ‘Budget’ release?

Budgets translate strategic plans into action. Budgets provide an excellent record of organizational activities. It improves communication with employees.


What is ‘Capital expenditure’?

Capital expenditures (CapEx) are funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology.


What is ‘Revenue expenditure’?

Revenue expenditures are short-term expenses used in the current period or typically within one year.


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