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What is Revenue Deficit and Capital Budget (in Hindi)
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Chapter 18 Part 2

Aartee Mishra is teaching live on Unacademy Plus

Aartee Mishra
Delhi University Topper Post Graduated in History Founder - Rank secure IAS Academy 4 Years Experience Use code : RANK10 for Mentorship

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Nice example of Revenue Deficit and its consequences:----STATUE OF UNITY.
mam ye pura ho gya ias ke liye
mam ye ssc cgl ke lia bhi h kya .pls mam rply jarur dena
  1. Daily Lecture Series Ramesh Singh's nar unacademy Indian Economy Public Financein India By Aartee Mishra Hindis

  2. I am Aartee Mishra Graduated from Delhi University, Topper in all my semesters, Pursuing P.G and preparing for CSE. 2 Years of teaching experience of General Studies for competitive examination Have been teaching on Unacademy Plus

  3. NCERT Class 6-12 Intensive Coverage of All the Subjects Prelims & Mains Subjects Covereds Aartee Mishra Course Starting from, 31st Aug 730pm-900pm Polity: Governance, Society, Public Administration Geography: Indian and World Geography, All Important Maps, Physical and Political Features, Disaster Management History: Ancient, Medieval, Modern with Art & Culture Economics: Basic Concepts, Understanding Economic Development Science: Important Chapters of Environment and Ecology on Unacademy Plus

  4. The Revenue Deficit If the balance of total revenue receipts and total revenue expenditures turns out to be negative it is known as revenue deficit, a new fiscal terminology used since the fiscal 1997-98 in India. This shows that the government's Revenue Budget (see the next topic) is running in losses and the government is earning less revenue and spending more revenues-incurring a deficit. Revenue expenditures are of immediate nature (this has to be done) and since they are consumptive/non-productive they are considered as a kind of expenditure which sums up to a heinous crime in the area of fiscal policy. Governments fulfil the gap/deficit with the money which could have been spent/ intvested in productive areas

  5. Capital Budget: The part of the Budget which deals with the receipts and expenditures of the capital by the government. This shows the means by which the capital is managed and the areas where capital is spent. Capital Receipts: All non-revenue reciepts of a government are known as capital receipts. Such receipts are for investment purposes and supposed to be spent on plan development by a government. But the receipts might need their diversion to meet other needs to take care of the rising revenue expenditure of a government as the case had been with India. The capital receipts in India include the following capital kind of accruals to the government:

  6. Capital Receipts (i) Loan Recovery This is one source of the capital receipts. The money the government had lent out in the past in India (states, UTs, PSUs, etc.) and abroad their capital comes back to the government when the borrowers repay them as capital receipts. The interests which come to the government on such loans are part of the revenue receipts. . .(ii) Borrowings by the Government This includes all long-term loans raised by the government inside the country (i.e., internal borrowings) and outside the country (i.e., external borrowings). Internal borrowings might include the borrowings from the RBI, Indian banks, financial institutions, etc. Similarly, external borrowings might include the loans from the World Bank, the IMF, foreign banks, foreign governments, foreign financial institutions, etc.

  7. Capital Receipts ii) Other Receipts by the Government This includes many long-term capital accruals to the government through the Provident Fund (PF), Postal Deposits, various small saving schemes (SSSs) and the government bonds sold to the public (as Indira Vikas Patra, Kisan Vikas Patra, Market Stabilisation Bond, etc.) Such receipts are nothing but a kind of loan on which the government needs to pay interests on their maturities. But they play a role in capital raising process by the government.

  8. 9UNACADEMY PLUS Concepts of Indian Economy with developments Post-Independence By Aartee Mishra

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