Tag: main feature of tax

Effective Revenue Deficit is the difference between revenue deficit and grants for the creation of capital assets. In other words, the Effective Revenue Deficit excludes those revenue expenditures which were done in the form of grants for the creation of capital assets.
It was introduced in the Budget for the first time in 2011-2012

Public finance is the branch of economics which assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones.

Tax is levied by government on their citizens to generate income for undertaking projects to boost the economy of the country and to raise the standard of living of its citizens. Union tax is a tax paid to central government. Stamp duties on financial documents, Taxes on railway freights and fares are not the examples of Union tax.

The person who presents the central budget in the Lok Sabha is Finance Minister.

A fiscal deficit occurs when a government's total expenditures exceed the revenue that it generates, excluding money from borrowings. Deficit differs from debt, which is an accumulation of yearly deficits.

The central budget has to be approved by both the Houses of Parliament before March 31st.

Fiscal policy refers to the use by the government of the various instruments such as taxation, expenditure and borrowing to achieve the objectives of balanced economic development, full employment, etc. The budget or the annual financial statement of the government, gives expression to its fiscal policy.
In accordance with Article-112 of the Indian Constitution, the President shall cause to be laid a financial statement before both the houses of parliament at the commencement of every financial year of the estimated receipts and expenditure of the Government of India for that year.