Any income that does not generate a liability is revenue. Both represent an inflow of cash for the business. The government collects interest as non-tax revenue on the loans and funds advanced to states for various purposes. Tax revenue + Non-Tax Revenue)—Revenue expenditure. when capital is invested by the owner, business gets revenue receipt (i.e. A fiscal deficit occurs when this expenditure exceeds the revenue generated. Revenue Part of Indian Budget Revenue Receipt Direct Taxes The Revenue Budget comprises revenue receipts and expenditure met from these revenues. ... SelfStudyforIAS / IAS,IPS,UPSC - India’s best learning platform Revenue receipts are current incomes of government, which neither create liabilities nor cause any reduction in the assets of the government. The Union Budget of 2020-21 was presented by the Union Finance Minister Nirmala Sitharaman. Definition: Revenue deficit arises when the government’s revenue expenditure exceeds the total revenue receipts. Particulars. tax revenue includes a large number of diverse income sources, such as fees charged for the provision of public services, income from financial assets and government property, and EU funds. These receipts are classified into (a) Tax Revenue and (b) Non-tax Revenue. Latest News. It is shown in profit and loss account on the credit side. Profits on investments made by government. Important Notice for the candidates to submit choice of centre in respect of CSE and IFoS Examinations, 2021 Recruitment Test for 421 posts of Enforcement Officer-Accounts Officer, EPFO, 2020 will now be held on 05.09.2021 Capital receipt, when invested, produces revenue receipt e.g. fiscal risk from volatile items, such as non-tax revenue and to examine how such receipts can be used to support an efficient revenue policy, after taking due account of national specificities. GS paper 1. The Revenue Receipts: Revenue receipts are receipts of the government which are non-redeemable, i.e. Revenue Deficit. Select the correct answer code: Fiscal deficit is the difference between the government’s total expenditure and its total receipts (excluding borrowing). Jul 03,2021 - Receipts in budget can be capital or revenue. These are recurring in nature and directly affects the profit and loss of the business. Non-Tax Receipt - UPSC Current Affairs Insight. Collections 0020 462842.68 589326.92 385961.53 473365.39 1.02. Jul 24,2021 - Disinvestment is aa)Revenue Receiptsb)Revenue Expenditurec)Capital Expenditured)Capital ReceiptsCorrect answer is option 'D'. Fiscal Deficit Target – fiscal deficit should be reduced to 3% of GDP by March 31, 2009. This is a result of the normal and core business activities. ; so on the same logic IF DevAnand gives khairaat to someone (outgoing money)=>then we must put it under revenue Expenditure. The Non-Tax Revenue is the recurring income earned by the government from sources other than taxes. borrowing) or (ii) reduce assets (e.g. Of these, the share of tax revenue to total receipt is 59%. ... Indian Budget 2020 Terms UPSC. Revenue Deficit. Fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding borrowing. Revenue budget: It contains the government's revenue receipts and expenditure Capital Budget : It comprises the government's capital receipts and payments. ... What are Non-Tax Receipts? Revenue deficit includes those transactions that have a direct impact on a government’s current income and expenditure. A receipt is a revenue receipt if – It does not create any liability for the government. ... Revenue deficit is “the difference between revenue expenditure and revenue receipts which indicates increase in liabilities of the Central Government without increase in the assets of that Government”. Important Facts to Know about Deficit Financing for UPSC. Broadly, any expenditure which does not lead to any creation of assets or reduction in liability is treated as revenue expenditure. Fiscal Deficit bangalore upsc coaching center #GS3 #Economy Fiscal Deficit has continued to soar in September to reach Rs 9.1 lakh crore, or almost 115% of the budget target of Rs 7.96 lakh crore for 2020-21, as per the CAG. Budget comprises of the (a) Revenue … 1 IMPORTANT TERMS IN FISCAL POLICY: 1.1 1.Revenue: 1.2 2.Non-revenue: 1.3 3.Revenue Receipts: 1.3.1 a) Tax revenue receipts: 1 Comment. The revenue deficit refers to the excess of government’s revenue expenditure over revenue receipts. The difference between revenue expenditure and revenue receipt is known as revenue deficit. Which of the following actions can be taken by the government to reduce the deficit? Receipts. Revenue expenditure is synonymous with consumption and non development, in general. It has recommended post-devolution revenue deficit grants amounting to about Rs. Both represent an inflow of cash for the business. It has recommended post-devolution revenue deficit grants amounting to about Rs. Revenue Receipts: Tax and Non-Tax Revenue – UPSC Notes:-Download PDF Here. they cannot be reclaimed from the Government. Revenue Expenditure. UPSC & IAS Study Material The Revenue Budget comprises revenue receipts and expenditure met from these revenues. The revenue receipts include both tax revenue (like income tax, excise duty) and non-tax revenue (like interest receipts, profits). Estate duty* (During inheritance of prop.) Progressive in nature viz. Richer person will pay higher tax 26th July 2021. Understandably, tax revenue is the largest receipt item for the government. These revenue receipts are non-redeemable and can be classified into two categories namely: tax … It should not lead to a fall in the assets of the government. therefore it also indicates total borrowings from all sources. The government collects interest as non-tax revenue on the loans and funds advanced to states for various purposes. These receipts include tax revenues and other revenues of the government. UPSC-IAS Current Affairs 16th March, 2020. It shows the shortfall of the government’s current receipts over current expenditure. Capital Receipts: Government receipts which either (i) create liabilities (e.g. Primary Deficit. They are non-recurring and non-routine in nature. ; They are divided into tax and non-tax revenues. Revenue expenses are short-term expenses to meet the ongoing operational costs of running a business. The revenue receipts that are not generated by public taxing is called non-tax revenue receipts. The questions are focused on both the concepts and facts. Download Fiscal policy in India 2018 PDF very useful for UPSC, BANKING & SSC EXAMS PDF. GrantsSelect the correct answer using the codes given below.a)1 and 2 onlyb)1 and 3 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. In this article, we shall help you not only understand the key points of the Union Budget 2020 but also understand the key concepts like Fiscal Deficit, Primary Deficit etc. The revenue receipts are non-redeemable and can be further classified into the tax revenue and non-tax revenue. of revenue, capital and loans net of repayments on the one hand and revenue receipts of Government and capital receipts which are not in the nature of borrowing but which finally accrue to Government on the other, constitutes gross fiscal deficit. Fiscal Deficit = (Revenue Expenditure - Revenue Receipts) + Capital Expenditure - (Recoveries of loans + other Receipts) The Fiscal Responsibility and Budget Management (FRBM) Act, 2003, was brought into force on July 5, 2004. 4. In India, there is revenue deficit since 1978. These are financed out of revenue receipts. Definition: Revenue deficit arises when the government’s revenue expenditure exceeds the total revenue receipts. ... SelfStudyforIAS / IAS,IPS,UPSC - India’s best learning platform of revenue, capital and loans net of repayments on the one hand and revenue receipts of Government and capital receipts which are not in the nature of borrowing but which finally accrue to Government on the other, constitutes gross fiscal deficit. Non Tax Revenue definition: While taxation is a primary source of income for the government, it also earns some recurring income other than tax, which is called non-tax revenue. Revenue Receipts Revenue receipts can be defined as those receipts which neither create any liability nor cause any reduction in the assets of the government. Union Budget 2021 Download PDF: The Union Budget, referred to as the Annual Financial Statement in Article 112 of the Constitution of India, is the annual budget of the Republic of India, presented before the beginning of each financial year by the Finance Minister of the India in Parliament. Revenue . Revenue deficit is the excess of total revenue expenditure of the government over its total revenue receipts. The minimum annual reduction target was 0.5% of GDP. Receipts from sources other than taxes account for slightly more than one-tenth of total revenue, but the fiscal Definition of Revenue Receipt. These receipts are a part of normal business operations that is why they occur again and again however its benefit can be enjoyed only … Taxes imposed on goods imported into and exported out of India 2. ... What are Non-Tax Receipts? There has been a persistent deficit budget year after year. Public Account. These receipts include tax revenues and other revenues of the government. Revenue Receipts- Tax Revenue and Non-Tax Revenue (UPSC Notes) The receipts that do not create any liabilities and do not lead to a claim on the government are called revenue receipts. The Centre provides the Post Devolution Revenue Deficit Grant to the States under Article 275 of the Constitution. borrowing) or (ii) reduce assets (e.g. A budget deficit is said to happen when expenses exceed revenue. Income of PSUs 3. Increase in owner's equity or Total sales. However, if the government gets the same money has grant (donation), its revenue receipt because … The Current Affairs questions are based on sources like ‘ The Hindu ’, ‘ Indian Express ’ and ‘ PIB ’, which are very important sources for UPSC Prelims Exam. Meaning. The revenue receipts are recurring in nature. Revenue Deficit. #The budgetary shortages measure how successfully the government manages its finances. This is the money that the government earns as profits and dividends from making a profit through public enterprises. Statements 1 and 2 are correct. Revenue Receipts are the receipts which arise through the core business activities. Can you explain this answer? FD is reflective of the total borrowing requirements of government. 7. Fiscal Deficit = revenue deficit + Capital expenditure – Non debt creating capital receipts) Fiscal deficit is financed by borrowings. Revenue receipts are further classified Into Tax Revenue and Nontax Revenue as explained in Section 9.6. Government receipts which either (i) create liabilities (e.g. borrowing) or (ii) reduce assets (e.g. disinvestment) are called capital receipts. | EduRev UPSC Question is disucussed on EduRev Study Group by 115 UPSC Students. ; Tax revenues divided into direct taxes and indirect taxes. on Economics | Budget Deficits Explained. Nirmala Sitharaman, Minister of Finance, presented the Indian Budget 2020 on February 1, 2020. Revenue Receipts: RR are receipts of the government incomes which cannot be reclaimed back by the citizens from the government. The expenditure incurred by thegovernment that neither creates any physical/financial asset nor reduces the liability of the government. The Revenue expenditure relates to thedaytoday functioning of the government. Revenue receipts of the government do not include which of the following? The revenue deficit refers to the excess of the government’s revenue expenditure over revenue receipts. ... IAS GOOGLE has been prepared in pace with emerging UPSC Trends. The eligibility of states to receive this grant and the quantum of the grant was decided by the Commission based on the gap between assessment of revenue … 4. Financial Accounting - Capital and Revenue. A revenue account includes all the revenue receipts also known as current receipts of the government. It is shown in the Balance Sheet on the liability side. Size of Economy: India is now the fifth largest economy of the world in terms of GDP. 25 Jul. The first step in the General Studies Paper of Economics preparation strategy in UPSC Prelims is to have a clear understanding and grasp of the syllabus concerning the subject. The grants are released as per the recommendations of the Finance Commission in monthly instalments to meet the gap in revenue accounts of the States post-devolution. The revenue receipts include both tax revenue (like income tax, excise duty) and non-tax revenue (like interest receipts, profits). They are generated from issue of shares, government’s grants, insurance claims, bank loans or loans from financial institutions, issue of denatures etc. Fiscal Deficit (FD) and 3. The revenue account shows the current receipts of the government and the expenditure that can be met from these receipts. Revenue Receipts: RR are receipts of the government incomes which cannot be reclaimed back by the citizens from the government. This situation means government’s revenue receipts like tax revenues are not enough to meet its revenue expenditure. Nearly 75% of the total budget receipts are non-debt receipts. They are divided into Tax Revenue and Non-tax revenue. deficit and revenue deficit, and other concepts for the UPSC economy segment. These cannot be understood without a basic knowledge of the Budget. Effective Revenue Deficit is the difference between revenue deficit and grants for creation of capital assets. Revenue deficit arises when the government’s revenue expenditure exceeds the total revenue receipts. Corporation Tax 1.01. Government Budgeting in India – Economics Study Material & Notes. Unlike in the case of capital expenditure, revenue expenditure will not give any revenue to the government in future. Budget contains: – Estimates of revenue and capital receipts, – Ways and means to raise the revenue… It is shown in profit and loss account on the credit side. UPSC Quiz – 2021 : IASbaba’s Daily Current Affairs Quiz 13th JULY 2021. Calculation: Revenue deficit can be calculated by subtracting total revenue expenditure from total revenue receipts. Syllabus topic – Indian culture will cover the salient aspects of Art Forms, literature and Architecture from ancient to … What is Fiscal Deficit? Among non-debt receipts, the second most important component is non-tax revenues. ... Editorials/Opinions Analyses for UPSC – 30 June 2021; ADVERTISEMENTS: A receipt is a capital receipt if it satisfies any one of the two conditions: (i) The receipts must […] Capital receipt, when invested, produces revenue receipt e.g. Loan recoveries2. Revenue deficit: Revenue deficit is excess of total revenue expenditure of the government over its total revenue receipts. Fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding borrowing. Gross primary deficit is measured by gross fiscal deficit reduced by gross interest payments. RELEVANCE – UPSC GS PRELIMS & GS MAINS III First go through the text (given after the questions) and then attempt the questions UPSC PRELIMS 2015 QUES . They are regular and recurring in nature and the government receives them in the normal course of activities. Public Account. ; They are therefore termed non-redeemable. Fiscal Deficit is the difference between the Revenue Receipts plus Non-debt Capital Receipts (NDCR) and the total expenditure. Revenue account: This shows the current receipts of the government and the expense that can be met from these. Revenue deficit includes those transactions that have a direct impact on a government’s current income and expenditure. The primary difference between Capital Receipts vs Revenue Receipts is that Capital receipts are the receipts of non-recurring nature which either creates the liability of the company or reduces the company’s assets whereas revenue receipts are the receipts of recurring nature and are reported in the statement of income of the company. 2. Insights has redefined the way preparation is done in UPSC civil service exam. 7. ... Indian Budget 2020 Terms UPSC. A revenue account includes all the revenue receipts also known as current receipts of the government. Contents [ hide] 0.1 Download FISCAL POLICY in India PDF: 0.2 What is Fiscal Policy. The revenue deficit refers to the excess of the government’s revenue expenditure over revenue receipts. Capital Receipt and Revenue Receipt are an integral part of business activity, just like capital expenditure and revenue expenditure. ADVERTISEMENTS: Capital Receipts: Meaning, Conditions and Sources! It does not produce capital receipt. Various services are provided by the Government of India to yield revenue for the government. INTRODUCTION The different sources of government revenue can be categorised under two main headings: taxation Revenue deficit = Revenue receipts (i.e. Generally, expenditure incurred on normal running of the government departments and maintenance of services is treated as revenue … ... IAS GOOGLE has been prepared in pace with emerging UPSC Trends. | EduRev UPSC Question is disucussed on EduRev Study Group by 230 UPSC … Revenue receipts are current incomes of government, which neither create liabilities nor cause any reduction in the assets of the government. Revenue deficit- 2.7% of GDP (2020-21). Thus when govt. 24. 25 Jul. 26 Jul. Revenue deficit includes those transactions that have a direct impact on a government’s current income and expenditure. The Non-Tax Revenue is the recurring income earned by the government from sources other than taxes. Can you explain this answer? More Information . Revenue Deficit Target – revenue deficit should be completely eliminated by March 31, 2009. The difference between revenue expenditure and revenue receipt is known as revenue deficit. 6 1. Differentiation between revenue deficit, fiscal deficit and primary deficit. Any shortfall has to be compensated from the receipts of Compensation Cess imposed on selected commodities that attract a GST of 28 percent. It shows the shortfall of the government’s current receipts over current expenditure. 4. These are mainly profit of PSEs. It is an important topic for the IAS exam. Forms of Taxes and Subsidies Revenue receipts comprise both tax and non-tax revenues while capital receipts consist of capital receipts and non-debt capital receipts. As the word suggests, it refers to the amount by which Spending exceeds Income. Article 112: Annual Financial Statement (Budget): 1. Fiscal Deficit. For details of the union budget 2021-2022 read this article. Therefore the budget comprises of revenue budget and capital budget. Following tips and strategies would help an aspirant find guidance in Economics and help him prepare for UPSC Prelims 2021-UPSC Prelims 2021 GS Economics Syllabus. Capital expenditures are major investments of capital to expand a company's business. Revenue Receipt These receipts are a major source of income for any kind of a business and without it, a business can’t survive for long. Cash-inflow or total cash received. Capital Receipts: Government receipts which either (i) create liabilities (e.g. The 15th Finance Commission has estimated that 17 states would face revenue deficit post-devolution. Thus when govt. The opposite of the concept of the budget deficit is budget surplus. Primary Deficit (PD). disinvestment) are called capital receipts. July 25, 2021 – Daily Quiz. sale proceeds of … Revenue receipts are further classified Into Tax Revenue and Nontax Revenue as explained in Section 9.6. 1. 1. Capital Receipt and Revenue Receipt are an integral part of business activity, just like capital expenditure and revenue expenditure. Thursday, January 14, 2021. ; Unlike LOANs, the grant/aid/charity cannot recovered after 10-20 years=> therefore its … Revenue receipts are further classified Into Tax Revenue and Nontax Revenue as explained in Section 9.6. when capital is invested by the owner, business gets revenue receipt (i.e. ... 5 Reasons How Helpful NCERT History Notes Could Be For Your UPSC Exam Preparation? Capital receipts These are the non-recurring income received by the company and come under investing and financial activities. Latest News. 1. It is an indicator of the financial health of the economy. Revenue is the sum or the income which is earned by providing or offering customer's a product or it's services and is credited in profit or loss account. July 25, 2021 – Daily Quiz. Which of these is/are capital receipts?1. Although both are an integral part of business activity, capital and revenue receipts … The compensation is calculated based on the difference between the current states’ GST revenue and the protected revenue after estimating an annualised 14% growth rate from the base year of 2015-16. A statement of estimated receipts and expenditures of the government tin respect of every financial year which runs from 1 April to 31 March. Revenue receipts: 1. Revenue deficit is the difference between the revenue receipts on tax and non-tax sides and the revenue expenditure. 2.94 lakh crores over the five-year period ending FY26. Later in 2015, the TDSAT said AGR included all receipts except capital receipts and revenue from non-core sources such as rent, profit on the sale of fixed assets, dividend, ... Today, Insights is synonymous with UPSC civil services exam preparation. 4. Thursday, January 14, 2021. Non-Tax Receipt - UPSC Current Affairs Insight. 26th July 2021. Fig 1: Budget 2016 theme – “Transform India”. Gross primary deficit is measured by gross fiscal deficit reduced by gross interest payments. It does not produce capital receipt. Capital receipts refer to those receipts which either create a liability or cause a reduction in the assets of the government. 25 Jul. One of the major aspects of preparing a correct financial statement is to distinguish revenue and capital in regard to revenue income, revenue expenditure, revenue payments, revenue profits, and revenue losses of the company with capital income, capital receipts, capital profit, or capital losses. Presented before the Parliament. This represents that the government’s own earnings are not sufficient to meet the day-to-day operations of its departments. Capital receipts reduce an asset or will increase a liability. UPSC-IAS Current Affairs 16th March, 2020. Revenue Deficit (RD), 2. These receipts are classified into (a) Tax Revenue and (b) Non-tax Revenue. Primary Deficit. Tax revenues constitute taxes like income tax, corporate tax, excise, customs, service … Revenue deficit = Revenue expenditure – Revenue receipts. 25 Jul. Tax revenues constitute taxes like income tax, corporate tax, excise, customs, service … Statement 3: The Budget Division of the Department of Economic Affairs in the Finance Ministry is the nodal body responsible for preparing the Budget. 26 Jul. By definition, revenue deficit is the excess of revenue expenditure over revenue receipts. The main difference between Revenue and Receipt is that Receipt is the cash received and is also known as cash inflow or 'Cash Receipt' meaning cash received by the entity, but it also includes revenue and other loans that it has to repay back and Revenue means the benefits the entity has received or earned by its main business and the earning is it's own and does not need to Thus, the disclosure of revenue receipts are required to be made in the … Although both are an integral part of business activity, capital and revenue receipts … Growth and Inflation: 7.4% average growth clocked during 2014-19 with inflation averaging around 4.5%. The term “Revenue Receipt” is made up of two words revenue and receipts. The budget deficit is the excess of total expenditure over total receipts. Being a normal business result is the reason for its recurring nature. The budget or Annual Financial Statement should separate revenue expenditure from the rest. 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Divided into tax and non-tax revenues while capital receipts: RR are receipts of the total budget are! Collects interest as non-tax revenue reduced by gross fiscal deficit target – fiscal occurs! Government and the economy – Classification of receipts Classification of receipts Classification of receipts revenue receipts, the share tax... Reduces the liability side non-redeemable, i.e sharing my exam preparation, views matters. Deficit includes those transactions that have a direct impact on a government ’ s own earnings are generated... Between revenue or current expenditure and revenue: India is now the largest. Through the core business activities account shows the shortfall of the government ’ s revenue over. … 1 Comment budget and capital budget revenue Receiptsb ) revenue Expenditurec ) capital Expenditured ) capital ). 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Is disucussed on EduRev Study Group by 115 UPSC Students or revenue of these, second! Expenditure exceeds the total revenue receipts also known as current receipts of the or. Has been a persistent deficit budget year after year, just like capital expenditure and its total receipts excluding )! The concept of the government thedaytoday functioning of the budget deficit is the difference between revenue current. Is borrowing to Finance its revenue deficit can be capital or revenue government 's capital receipts these recurring. Those transactions that have a direct impact on a government ’ s total expenditure and revenue receipts comprise tax! Should be reduced to 3 % of GDP the minimum Annual reduction target 0.5... Article will talk about tax revenue and Nontax revenue as explained in Section 9.6 as word..., any expenditure which does not create any liability for the business into direct taxes and Subsidies Financial -. 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It has recommended post-devolution revenue deficit, and other revenues of the government ’ s total and., the second most important component is non-tax revenues Indian culture will cover the salient of! Is done in UPSC civil service exam not be reclaimed back by the owner, gets... States would face revenue deficit refers to the excess of the total revenue receipts are current incomes of government literature. Knowledge of the total revenue receipts are receipts of the following borrowing of. Share of tax revenue and ( b ) non-tax revenue a claim on the government and the expenditure incurred thegovernment. Arise through the core business activities money revenue receipts upsc the government nature and the government on! With emerging UPSC Trends it contains the government ’ s revenue expenditure over revenue receipts: deficit... Sale proceeds of … revenue receipts account includes all the revenue budget and revenue receipts upsc budget: it comprises the manages! 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