Kerala SCERT Class 10 Social Science 2 Chapter 5 Public Expenditure and Public Revenue Question Answer Solution Here. Kerala Board Class 10 Students can find Here 5th Chapter Public Expenditure and Public Revenue Notes provide by our Teacher. Important Question Answer from Chapter 5 Public Expenditure and Public Revenue.
- Board- Kerala Board.
- Class – 10.
- Subject – Social Science 2 Part 2.
- Chapter – 5.
- Chapter Name – Public Expenditure and Public Revenue.
- Topic – Question Answer Solution.
(1) What is Public expenditure?
Answer: The government undertake many activities there are for welfare of the people. Money is required for these activities. The expenditure incurred by the government is known as public expenditure.
(2) What is developmental expenditures?
Answer: The expenditure incurred by the government for constructing roads, bridges, and harbours, starting up new enterprises, setting up educational institution, etc are considered as developmental expenditures.
(3) What is non-developmental expenditures?
Answer: The expenditure incurred for war, interest, pension etc are considered as non-developmental expenditure.
(4) Why does India’s public expenditure increase?
Answer: As the population of India increasing day by day, the facilities for education, health, shelters etc. have to provide for more people. Government spends money for these facilities. Some other important reasons are to increase in the public expenditure are 1) Increase in the defence expenditure
(2) Welfare activities
(3) Urbanisation.
All are the reasons for increase in public expenditure.
(5) What is Public revenue, and what are main sources of government income?
Answer: The government needed income for expenditure. The sources to the government income are known as Public revenue.
The government earns income primarily from two sources. They are
(1) Tax revenue: Tax is the compulsory payment to the government made by the public for meeting expenditure towards welfare activities, developmental activities etc.
(3) Non tax revenue: The money taken by the government other than taxation. Includes bonds profits state own companies.
(6) What is Direct Tax?
Answer: This type of tax imposed on a taxpayer who getting profit or having an income. For example the land tax is paid by the person on whom it is imposed. The land owner can not impose tax on other people the load of the tax is borne by the same person on whom tax is imposed. These are taxes knows as direct tax.
(7) What is Personal income tax?
Answer: It is the tax imposed on the income of individuals. With the rate of tax the income tax increases. The central government collects tax in India.
(8) What is indirect tax?
Answer: In this tax the burden can be shifted from the person on whom it is imposed to another person. The mediate later files a tax.
(9) How GST is taken? And state the
Major taxes merged into GST.
Answer: The central and state government imposed GST on goods and services. The CGST and SGST taxes are collected jointly from the consumer and shared equally by the centre and state government.
The major taxes merged into GST are
(1) Central excise duty
(2) Service taxes
(3) Central sale tax
(4) State value added tax
(5) Luxury tax
(6) Advertisement tax
(7) Octroi
(8) Entertainment taxes.
(10) What are CGST, SGST and IGST?
Answer: The central and state government imposed GST and services traded within the state. The tax imposed by the central government is known as CGST and tax imposed by State government is known as SGST. These taxes are collected jointly by the consumer and shared equally by the central government and state government. The tax collected by the state and the central is known as Integrated GST (IGST). The GST on Interstate trade is imposed and collected by the central government.
(11) Which items are not come in GST?
Answer: Petroleum products, raw petrol, diesel, petrol, natural gas, aviation fuel, electricity, lacquer do not come under GST. The existing indirect tax system will continue on these items.
(12) What does the GST council make recommended?
Answer: The GST council make the following recommendations:
(1) Taxes, cess and surcharges that are to be merged into GST.
(2) The goods and services that are to be brought under GST.
(3) Determine GST rated.
(4) The Time frame for including the excluded items into GST.
(5) Determining the tax exemption limit on the basis of the total turnover.
(13) What is surcharges?
Answer: Surcharges is an additional tax on tax amount. This is imposed for a certain period of time. Usually surcharges are imposed as given percentage on the income tax.
(14) What is Cess?
Answer: Cess is an additional tax for meeting some special purpose of government. Cess is withdrawn once sufficient revenue is collected.
(15) State the name of taxes imposed by the central government.
Answer:
(1) Corporate tax
(2) Personal income tax
(3) Central GST (CGST)
(4) Integrated GST (IGST)
(16) What are the sources to non-revenue taxes for the government?
Answer: The non- revenue taxes for the government are
Fees: A fee is the rewards collected for the government services. Like licence fees, registration fees, tuition fee etc.
Fines and penalties: fines and penalties are the punishment for violating the laws.
Grants: Grants are the financial aid provided by one government or organisation for meeting a specific objective.
Interest: government receive interest for loan given to various enterprises, agencies and countries.
Profit: Profit is the net income received from the enterprises operated by the government.
(17) What is Public debit and how it is classified?
Answer: Public debit are loans taken by the government. Loans are availed from inside of the country and from outside of the country. These are known as internal debt and external debt respectively.
Internal debt: internal debt are the loans availed by the government from individuals and institutions within the country.
External debt: external debts are the loans availed from foreign governments and international institutions.
(18) What is the reason for the increase in India’s public debt?
Answer: The reasons for the increase in India’s public debt are
(1) Increased defence expenditures
(2) Increase in population
(3) Social welfare activities
(4) Developmental activities.
(19) What is Public finance budget?
Answer: Public finance is the branch of economics that relates to public income, public expenditure and public debt. Public finance present through the budget.
Budget: budget is the financial statement showing the expected income and expenditure of the government during a financial year in India, financial year is from April 1 to March 31.
(20) What is fiscal policy and what are the goals of fiscal policy?
Answer: Government’s policy regarding public revenue, public expenditure and public debt is called fiscal policy. These policies are implemented through the budget. Fiscal policy influence a country’s progress.
There goals are
(1) To attain economic stability
(2) To create employment opportunities
(3) To control unnecessary expenditure
(21) How fiscal policy controls inflation and deflation which effect economic security?
Answer: The tax rate increases when there is inflation. As a result of the purchasing power of the people falls for example, assume that tax rate is increased from the people falls for example assume that tax rate is increased from ten percentage to twenty percentage. At the time the tax for 100 rupees will be 20 rupees. But what if the consumer having only 80 rupees, hence the product cannot be sold in the market and market prices fall. Similarly tax is reduced at the time of deflation and reduction in tax increases the purchasing power of people. As the result the demand of products increases in this way How fiscal policy controls inflation and deflation which effect economic security.