Government Budget And The Economy

Step 1: Understanding GST.
The Goods and Services Tax (GST) is a single tax on the supply of goods and services in India. The standard GST rate is 18%, which applies to most goods and services unless specifically exempted.

Step 2: Conclusion.
Thus, the correct answer is 18%.

Step 1: Understanding non-tax revenue.
Non-tax revenue is the income generated by the government through sources other than taxes. This includes income from dividends, interest, and other fees or charges.

Step 2: Conclusion.
Thus, the correct answer is option (3) Dividend.

Step 1: Understand Revenue Expenditure.
Revenue expenditure refers to the costs incurred in the day-to-day operations of the government, which are used up within the year. These do not result in the creation of assets or liabilities. Examples include salaries, subsidies, interest payments, etc.

Step 2: Understand Capital Expenditure.
Capital expenditure refers to spending on the creation of assets or investments. This expenditure results in the acquisition of new physical assets or investments that will provide benefits over the long term. Examples include building infrastructure, buying machinery, etc.

Step 3: Key Differences.
- Revenue expenditure is for the routine functioning of the government, while capital expenditure is for creating new assets or investing in long-term assets.
- Revenue expenditure is short-term, whereas capital expenditure is long-term.
- Revenue expenditure does not add to the assets of the government, while capital expenditure does.

Step 1: Understanding Deficit Budget.
A deficit budget occurs when the government's total expenditures exceed its total revenues in a given period, resulting in a budget deficit. The government borrows funds to cover the gap between its expenditure and revenue.

Step 2: Types of Deficit Budget.
- **Revenue Deficit:** When the government's revenue expenditure exceeds its revenue receipts, it leads to a revenue deficit.
- **Fiscal Deficit:** This is the excess of total expenditure (both revenue and capital) over total receipts (excluding borrowings) in a given fiscal year. It shows the total borrowing requirements of the government.
- **Primary Deficit:** This is the fiscal deficit excluding the interest payments on previous borrowings. It reflects the government's borrowing needs, excluding the cost of servicing past debt.