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GOVERNMENT BUDGET AND THE ECONOMY




GOVERNMENT BUDGET AND THE ECONOMY

GOVERNMENT BUDGET AND THE ECONOMY

Budget in a layman’s language can be defined as an annual statement of the estimated Receipts and Expenditures of the Government over the fiscal year.
Budget is mainly divided into two broad categories:
  • Revenue Budget
  • Capital Budget
and there are two Budget Receipts:
  1. Revenue Receipts
  2. Capital Receipts
Furher, there are two types of Revenue Receipts:
  • Tax Revenue
  • Non-tax Revenue
whereas Capital Receipts consist of:
  1. a) Market Loans (loans raised from the public)
  2. b) Government Borrowings
  3. c) Loans received from International financial Institutions.


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