Government Budget and the Economy
In NCERT Introductory Macroeconomics, Chapter 4, this topic explains the government budget and its role in the economy. You classify receipts into revenue and capital, and expenditure into revenue and capital, then study revenue, fiscal, and primary deficits and what each reveals about borrowing. The chapter describes a balanced, surplus, or deficit budget, shows how taxes, subsidies, and public spending shift aggregate demand, and discusses using the budget to fight unemployment and inflation, reduce inequality, and fund public goods and infrastructure.
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