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Monday, June 16

Indian Economy Study Materials Part 3 - Public finance & fiscal policy

Latest:TNPSC Group 4 2016 Notification[5451 Posts]
  • An overall estimation of the revenue and expenditure for a specific time period generally from 1st April to 31st March

  • Article 112 - Central Government Budget
  • Article 202 - State Government Budget
  • Article 266(1) - Consolidated Fund of India
  • Article 266(2) - Public Accounts of India
  • Article 267 -  Contingency Fund of India
  • Article 280 - Finance Commission

Revenue Receipts
  • These amounts need not to be repaid to the payee.
  • Does not results in reduction of Assets
  • Revenue receipts are further classified into
    1. Tax Revenue
    2. Non -Tax Revenue

Capital Receipts
  • Results in a reduction of assets(Usually Permanent assets).
  • Some of the Capital receipts are as follows:
    • Market Loans - Loans raised from Public
    • Borrowing from RBI
    • Amount raised by disposal of assets


Revenue Expenditure
  • Expenditure incurred for normal day to day running of government
  • It does not yeild any return.
  • Some of the revenue Expenditure are as follows
    • Expenditure on Defence
    • Payment of Interest on loans
    • Subsidies
    • Pensions

Capital Expenditure
  • Expenditure which results in creating permanent assets.
  • Some of the Capital Expenditure are as follows
    • Infrastructure Projects
    • Machines
    • Irrigation Projects
    • Mines and Explorations 

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