Explanation
Unbalanced budget is the type of budget where government expenditure is not equal to government revenue. These includes
(i) Surplus Budget: In this type of budget, government revenue is greater than government expenditure due to which there is a surplus in the budget.
(ii) Deficit budget: In this type of budget, government expenditure is greater than government revenue due to which there is a deficit in the budget.
There are two types of budget in general.
1. Balanced Budget: In this type of budget, government expenditure is equal to government revenue.
2. Unbalanced budget: In this type of budget, government expenditure is not equal to government revenue.
Budget is an statement of the estimates of the government receipts and government expenditure during the period of the financial year. Balanced Budget is the type of budget where government expenditure is equal to government revenue.
Surplus Budget is the type of budget where the expected government revenue is greater than expected government expenditure due to which there is a surplus in the budget. Surplus budget is regarded as a positive indicator for the economy.
Revenue receipts refers to all such types of money receipts that do not create any liability for the government or does not reduce any asset of the government. These basically includes tax and non-tax revenue received by the government from the general public.
Revenue budget are the money receipts or payments that does not lead to decrease or increase in the value of asset and liability of the government. It usually includes the tax and non tax receipts of the government and the public services expenditure of the government.
Capital receipts are all those money receipts of the government that either create a liability for the government or reduce an asset of the government. These receipts are not recurring in nature as it is related to the valuation of assets and liabilities of the government.
Budget is a statement of the estimates of the government receipts and government expenditure during the period of the financial year. There are two main component of a budget:
1. Revenue budget - These are the money receipts or payments that does not lead to decrease or increase in the value of asset and liability of the government.
2. Capital budget - These are the money receipts or payments that lead to decrease or increase in the value of asset and liability of the government.
Non-tax receipts of the government are all those revenue receipts of the government that is not a part of tax receipts of the government be it a direct tax or indirect tax. For example - fees, fines, escheats, gifts and grants, interest and dividends on investment, etc.
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