JKSSB Paid Notes Class 5 – Economics | JKSSB Mock Test

💰 What is Union Budget?

1. Union Budget: Annual financial statement of the central government.
2. Presented in Lok Sabha by the Finance Minister (on 1st February every year since 2017).
3. Prepared by the Department of Economic Affairs (Ministry of Finance).
4. Article 112 of the Constitution mandates Union Budget presentation.

📌 SSC CGL: "Union Budget is presented under which Article?" — Article 112

📊 Components of Budget

1. Revenue Budget: Includes government’s revenue receipts and revenue expenditures. (Day-to-day expenses)
2. Capital Budget: Includes capital receipts and capital expenditures. (Assets creation & liabilities)

💡 SSC CHSL: "Money spent on salaries falls under?" — Revenue Expenditure

🧾 Types of Government Receipts

1. Revenue Receipts:
   • Tax Revenue: Income Tax, GST, Customs, Excise
   • Non-Tax Revenue: Interest, Dividends, Fees, Fines
2. Capital Receipts:
   • Borrowings (Loans from RBI, World Bank)
   • Disinvestment (Selling PSU shares)

📢 SSC MTS: "Borrowings are part of?" — Capital Receipts

🏗️ Types of Government Expenditure

1. Revenue Expenditure: Salaries, Pensions, Subsidies, Interest Payments
2. Capital Expenditure: Infrastructure, Road, Railways, Education Buildings, Health Infra

🧠 SSC GD: "What is Capital Expenditure?" — Money spent on asset creation

📉 Deficits in Budget

1. Fiscal Deficit: Total Expenditure – (Revenue + Non-debt Capital Receipts)
2. Revenue Deficit: Revenue Expenditure – Revenue Receipts
3. Primary Deficit: Fiscal Deficit – Interest Payments

📌 SSC CGL: "What is Fiscal Deficit?" — Expenditure > Income (excluding borrowings)

🧮 Types of Taxes

1. Direct Tax: Paid directly by individuals to govt (Income Tax, Corporate Tax)
2. Indirect Tax: Paid through intermediaries (GST, Excise, Customs)

💡 SSC CGL: "GST is which type of tax?" — Indirect Tax

📦 GST (Goods and Services Tax)

1. GST: One Nation One Tax, introduced on 1st July 2017
2. Replaced VAT, Excise, Service Tax
3. Collected by both Centre & States
4. Includes CGST, SGST, IGST

📢 SSC CHSL: "When was GST implemented?" — 1st July 2017

📝 Summary One-Liners for MCQs

1. Union Budget is presented on 1st Feb
2. Revenue Expenditure – Salaries, Pensions | Capital Expenditure – Infrastructure
3. Direct Tax – Income Tax | Indirect Tax – GST
4. Fiscal Deficit – Borrowing requirement of govt
5. GST started from 1st July 2017

🔗 Useful Links & Next Topic

1. Union Budget Official Site
2. GST Portal