Class 12 Economics - Chapter 5: Government Budget and the Economy
Learn how the government uses budgetary tools like taxation, expenditure, and deficits to influence the economy in Class 12 Macroeconomics Chapter 5.
Overview
This chapter explains the concept and structure of a government budget. It covers budget receipts and expenditures, fiscal deficits, types of budget, and how government spending and taxation impact the economy.
Why This Chapter Matters
Understanding government budgeting is crucial for evaluating how public finance is used to achieve economic goals like growth, equity, and stability. It also builds awareness of real-world fiscal policies and budget documents.
Real-Life Applications
- Identifying components of government receipts and expenditures.
- Understanding fiscal deficits, revenue deficits, and their implications.
- Analyzing the role of fiscal policy in stabilizing the economy.
Skills You Will Learn
- Distinguishing between types of budget (balanced, surplus, deficit).
- Interpreting budgetary data and fiscal indicators.
- Evaluating how taxes and subsidies affect economic growth and inequality.
Explore and Test Your Knowledge
Practice Test
Test your knowledge with our practice test.
Scheduled Talent Test
Participate in the weekly talent test for this chapter.
Flashcards
A: It is the excess of total expenditure over total receipts excluding borrowings.
A: Revenue budget and capital budget — covering both receipts and expenditures.
A: Through fiscal policy, the government can influence growth, inflation, and income distribution.
🎒 Must-Have School Essentials (Recommended by Prodigy Genius)
Carefully curated for students of Class 12 — trusted by 50,000+ parents!