Chapters

Fiscal System

Fiscal system is the complete structure of government in which it manages its revenue and expenditure. Fiscal system includes activates like rising, collecting money from public, borrowing and spending it in different activates of government.

Fiscal Policy

Fiscal policy is the method by which a government adjusts its spending and tax rates to monitor nation's economy. It is the sister strategy of the monetary policy through which a central bank influences a nation's money supply. These two policies are used in various combinations to direct a country's economic goals. The main concerns of fiscal policy are:

  1. Source of revenue for centre
  2. Expenditure of the centre

Source of Revenue for Centre

The major sources of revenue for state are:

  1. Tax revenue: Tax revenue includes income tax, corporate taxes, land revenue, stamp duty, registration and estate duty etc.
  2. Non tax revenue: Income from social, commercial and economic service and profits of state run enterprises.

Expenditure of the Centre

The major types of expenditure of the centre are:

  1. Planned Expenditure: Expenditure for Agriculture, rural development, irrigation, energy, industry and minerals, transport, communication etc. comes under the planned expenditure.
  2. Non Planned Expenditure: The major non-planned expenditure is defence, subsidies and interest payments etc.

Tax Revenue

Tax is a compulsory payment by the citizens to the government to meet the public expenditure. Types of tax are:

  1. Direct and Indirect Tax
  2. Progressive and Regressive Tax

Direct Tax

A is levied directly on the income or profits of the person who pays it, rather than on goods or services. E.g:

  1. Income tax
  2. Corporate tax
  3. Gift tax
  4. Wealth tax
  5. Land revenue
  6. Entertainment tax
  7. Professional tax

Indirect Tax

A tax levied on goods and services rather than on income or profits. An indirect tax is one which is imposed on someone but whose burden is shifted to someone else E.g:

  1. Sales tax
  2. Service tax
  3. Custom duty
  4. Excise duty
  5. Value added tax

Progressive Tax

A progressive tax is a tax in which the taxable amount increases the rate of tax also increases. The term "progressive" refers to the way the tax rate progresses from low to high, with the result that a taxpayer's average tax rate is less than the person's marginal tax rate.

Regressive Tax

A tax in which income of a person goes up the rate of tax goes down. A regressive tax is a tax imposed in such a manner as the amount subject to taxation increases the tax rate decreases.

Revenue Deficit

Revenue deficit arises when the government’s actual collected revenue (tax) is lower than the projected receipts (tax). On the contrary, if the actual receipts are higher than expected one, it is termed as revenue surplus.

Fiscal Deficit

The difference between total revenue (income) and total expenditure of the government is called as fiscal deficit. While calculating the total revenue, borrowings are not included. Fiscal deficit is indicators to the government that how much amount it have to borrow to complete the needs of nation.


Latest Current Affaris

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Current affairs 05/06/2019

1). Comptroller and auditor general Rajiv Mehrishi has been appointed as the external auditors of World Health Organisation (WHO) for a four year term from 2020-23. 2).World Environment Day is observed on 5 June(Theme: The Air Pollution). 3). Madhya Pradesh cabinet has passed a resolution to increase reservation of OBC's 27%.

करंट अफेयर्स 03-04/06/2019
करंट अफेयर्स 03-04/06/2019

1. नयब बुकेले को ईआई सल्वाडोर के राष्ट्रपति के रूप में चुना गया है। (ईआई सल्वाडोर की राजधानी: सैन सल्वाडोर, मुद्रा: संयुक्त राज्य अमेरिका डॉलर) 2. राष्ट्रीय सुरक्षा सलाहकार (NSA) अजीत डोभाल की दोबारा अपने पद पर नियुक्ति हुई। NDA सरकार के दूसरे कार्यकाल में उन्हें कैबिनेट रैंक दिया गया है। 3. 3 जून को विश्व साइकिल दिवस मनाया जाता है।

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1. Nyaib Bukele has been Sworn in as the president of  EI Salvador ( EI Salvador's capital: San Salvador, currency: United States Dollar). 2. National Security Advisor (NSA) Ajit Doval reappointed to his post and given Cabinet rank in the second term of the NDA government. 3. World Bicycle Day is observed on 3rd June .

Current Affairs Quiz

डेली जीके क्विज 17/05/2019
डेली जीके क्विज 17/05/2019

1. भारतीय नौसेना प्रमुख का नाम बताएं? 2. हाल ही में ICC द्वारा पहली महिला मैच रेफरी के रूप में किसे नियुक्त किया गया है? 3. हाल ही में एक हल्के खेल विमान (एलएसए) में अटलांटिक महासागर को पार करने वाली दुनिया की पहली महिला कौन बनी है?

Daily Gk Quiz 17/05/2019
Daily Gk Quiz 17/05/2019

1. Name the Indian Navy Chief? 2. Recently who has been appointed as first female match referee by ICC? 3. Recently who has becomes the world’s first woman to cross the Atlantic Ocean solo in a light sports aircraft (LSA)?

डेली जीके क्विज 29/09/2018
डेली जीके क्विज 29/09/2018

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