Kerala Syllabus 10th Standard Social Science Important Questions Chapter 5 Public Expenditure and Public Revenue

Kerala State Syllabus 10th Standard Social Science Important Questions Chapter 5 Public Expenditure and Public Revenue

Choose the correct answer.

Question 1.
An example for non-developmental expenditure.
War
Construction of roads
Construction of harbours
Answer:
War

Question 2.
A source of non tax revenue.
Fees
Excise duty
Customs duty
Answer:
Fees

Question 3.
An example for indirect tax.
Professional Tax
Goods and Services Tax
Corporate Tax
Answer:
Goods and Services Tax

Question 4.
Choose the correct statement about direct tax.
Paid by the person on whom it is imposed.
Tax payer does not know the burden of tax.
Tax burden can be transferred.
Answer:
Paid by the person on whom it is imposed.

Question 5.
An example for central govt. tax.
Property tax
Professional tax
Corporate tax
Answer:
Corporate tax

Answer in a sentence each.

Question 1.
Define public revenue and public expenditure.
Answer:

  • The income of the government is known as public revenue.
  • The expenditure incurred by the government is known as public expenditure.

Question 2.
How is public expenditure classified?
Answer:
Public expenditure is classified into developmental expenditure and non-developmental expenditure.

Question 3.
Government imposes a fine upon those who violate traffic rules. In which category does this income come?
Answer:
Non-tax revenue

Question 4.
What are taxes?
Answer:
Tax is a compulsory payment to the government made by the public for meeting expenditure towards welfare activities and developmental activities.

Question 5.
Who is a taxpayer?
Answer:
The one who pays tax is the taxpayer.

Question 6.
What is corporate tax?
Answer:
The tax imposed on the net income or profit of a company is called corporate tax.

Question 7.
Explain the term public debt.
Answer:
The loans taken by the government from within the country and abroad.

Question 8.
What is budget?
Answer:
Budget is the financial statement showing the expected income and expenditure of the government during a financial year.

Budget
The word budget is derived from the French! word “BOUGHETTE” which means leather bag. Generally Finance Minister brings financial proposals in leather bags.

Answer the following. Score 2 each

Question 1.
What is developmental expenditure? Write examples.
Answer:
The expenditure incurred by the government on developmental projects are known as developmental expenditure. The expenses of the government for construction of roads, bridges and harbours, starting up new enterprises, and setting up educational institutions, etc. are developmental expenditures.

Question 2.
Write examples for non-developmental expenditure.
Answer:
The expenses of the government on war, interest and pension are non-developmental expenditures.

Question 3.
The income of the government to undertake public expenditure is known as public revenue. Which are the sources of public revenue?
Answer:
Tax revenue and non-tax revenue.

Question 4.
Taxes are the main sources of government’s income. Write its features.
Answer:
Tax is a compulsory payment made by people to government to meet expenses of public interest like welfare activities and developmental activities.
Taxpayer does not expect any direct return from it.

Question 5.
Increase in population increases public expenditure. How?
Answer:
As population increases, facilities for education, health, shelter, etc. are to be provided for more people. The government has to spent money for this.

Question 6.
Surcharge and cess are special types of taxes. Write their features.
Answer:

  • Surcharge is the additional tax imposed on tax for a specific period.
  • “Cess is” an additional tax for meeting some special purpose of government. Cess will be discontinued when enough money is received.

Question 7.
Write the reasons for increase in the public debt of India.
Answer:

  • Increased defence expenditure
  • Increase in population
  • Social welfare activities
  • Developmental activities

Question 8.
Will higher taxes for high income group reduce economic inequality? How?
Answer:
Higher taxes for high income group reduces economic inequality. Tax is imposed on the ability to pay. Higher tax from the rich and low taxes from the poor reduce economic inequality. Such a tax is progressive.

Question 9.
Which are the sources of income for meeting the increased expenditure of governments? What is the major income of the government? In which type of income, the fees collected from students can be included?
Answer:
The income of the government is classified into tax revenue and non-tax revenue. They are as follows.

  • Tax Revenue (Direct Tax and Indirect Tax)
  • Non Tax Revenue
  • Tax revenue constitutes the lion’s share of public revenue
  • The fees collected from students is a non-tax revenue.

Question 10.
Personal income tax is a tax imposed on the income of the individual. What would be the tax burden of a tax payer having an income of ₹ 350000 per year as per the statement given below?
No tax for yearly income upto ₹250000.
Ten percent tax for income between ₹250000 and ₹500000.
Answer:
As per the tax slab given in the question, the person need not pay any tax for his first two lakh fifty thousand rupees. But he has to pay ten percentage tax for his next one lakh rupees. It is ten thousand rupees (₹ 10,000/-) only.\(\left(\frac{100000}{10}=₹ 10,000\right)\)

Question 11.
In what type of tax, taxpayer can transfer the burden of the tax to others? Find out an example on the basis of hints given below:
Hints: Tooth paste costs X40, Tax rate ten. percentage.
Answer:
In the case of indirect taxes, taxes are imposed on one person but paid by another person. Taxpayer can transfer the burden of tax to others. The example given in this question is an indirect tax imposed on a commodity. Tax Rupees four has to be paid for the tooth paste that costs ₹40 at a rate of 10 percentage tax. Trader remits ₹4 by way of tax. The trader in turn sells the toothpaste for ₹44 by adding the tax in the price. Here the tax burden is shifted by the trader to the consumer.

Question 12.
Distinguish between direct tax and indirect tax. Give one example each.
Answer:
When a person pays the tax imposed on him, it is called direct tax. The tax payer bears the burden of tax. Eg: personal income tax.

The tax imposed on one person and the tax burden is shifted to another person, it is called indirect tax. Eg: Sales tax.

Question 13.
Distinguish between internal debt and external debt.
Answer:
When the government avails loans from individuals and institutions within the country, it is called internal debt.
When the government avails loans from foreign governments and international institutions, it is called external debt.

Question 14.
Which are the major direct taxes in India?
Answer:
The two major direct taxes of India are

  1. Personal income tax: The tax imposed on the income of the individuals. The tax rate increases with income.
  2. Corporate tax: The tax imposed on the net income or profit of a company.

Question 15.
Classify the taxes given below as direct tax and indirect tax.
Personal income tax
Central GST
Corporate tax
State GST
Answer:

Direct tax Indirect tax
Personal income tax
Corporate tax
Central GST
State GST

Question 16.
Complete the sun diagram.
Kerala Syllabus 10th Standard Social Science Important Questions Chapter 5 Public Expenditure and Public Revenue 1
Answer:

  • Penalty
  • Interest
  • Grants
  • Profit

Question 17.
What is fees? Explain with example.
Answer:
Fees is a non tax revenue. It is the reward collected for the government’s services.
Eg. Licence fees, registration fees, etc.

Question 18.
What is meant by grant? Explain with example.
Answer:
Grants are the financial aid provided by one government for meeting a specific objective.
Eg. Grants provided by central government to local self governments.

Question 19.
The following statements are related to taxes in India.
A. Tax imposed at the production stage of a commodity.
B. Tax imposed on the net income of a company.
Based on the above statements, choose the correct item from below.
a. Both the statements are the features of direct taxes.
b. Both the statements are the features of indirect taxes.
c. A is related to indirect tax and B is related to direct tax.
d. A is related to direct tax and B is related to indirect tax.
Answer:
c. A is related to indirect tax and B is related to direct tax.

Question 20.
Kerala Syllabus 10th Standard Social Science Important Questions Chapter 5 Public Expenditure and Public Revenue 6

An individual got the above receipts A and B from two institutions. Choose the correct statement from below for the tax mentioned in the receipts.
a. The taxpayer did not feel the tax burden while receiving both the receipts.
b. The taxpayer felt the tax burden while receiving both the receipts.
c. The taxpayer felt the tax burden while receiving receipt A and not in receipt B.
d. The taxpayer felt tax burden while receiving receipt B and not in receipt A.
Answer:
c. The taxpayer felt the tax burden while receiving receipt A and not in receipt B.

Question 21.
The table shows the features of different types of budgets. Choose the correct marks given against them in each column.
Kerala Syllabus 10th Standard Social Science Important Questions Chapter 5 Public Expenditure and Public Revenue 2
A. a and b are correct
B. b and c are correct
C. .a and c are correct
D. a, b and c are correct
Answer:
C. a and c are correct

Question 22.
Public expenditure is classified into developmental expenditure and non-developmental expenditure. Write the difference between them.
Answer:
The expenditure incurred by government for constructing roads, bridges and harbours, starting up new enterprises, setting up educational institutions, etc. are considered as developmental expenditure. These will generate income in future.

Expenditure incurred by way of war, interest, pension etc. are considered as non-developmental expenditure.

Question 23.
The internal debt of India is increasing. What are its impacts?
Answer:

  • When debt is used for non-productive purposes, it becomes a liability to the future generation.
  • The country falls in debt trap.
  • Development retards.
  • Affects national progress

Question 24.
Which are the sources of tax revenue in the central budget.
Answer:

  • Personal income tax
  • Corporate tax
  • Customs duty
  • Excise duty.
  • GST

Answer the following. Score 3 each

Question 1.
Write the features of Goods and Services Tax (GST).
Answer:

  • GST is a tax imposed on goods and services.
  • It is an indirect tax.
  • Taxes are levied at different stages starting from production to final consumption of goods and services.
  • In each stage, the tax is imposed on the value-added.
  • The tax paid in the earlier stages need not be paid by the final consumer.

Question 2.
List the taxes imposed by central, state and local self-governments.
Answer:
Central Government taxes

  • Personal income tax
  • Corporate tax
  • Central GST

State Government taxes

  • State GST
  • Stamp duty
  • Land tax

Local Self Government taxes

  • Property tax
  • Professional tax

Question 3.
The loans taken by the government are called public debt. Which are the sources of public debt of the government?
Answer:

  • Government avails loans from within the country and outside the country. The two types of debt are internal debt and external debt.
  • Internal debts are the loans availed by the government from individuals and institutions within the country.
  • External debts are the loans availed by the government from foreign governments and international institutions.

Question 4.
Identity which governments have the power to collect the following taxes.
a. Personal income tax
b. Stamp duty
c. Professional tax
d. Land tax
e. Corporate tax
f. Property tax
Answer:
a. Central government
b. State government
c. Local self-government
d. State government
e. Central government
f. Local self-government

Question 5.
Classify the following budgets.
a. Revenue: ₹ 42200 crores
Expenditure: ₹ 42200 crores budget.

b.Revenue: ₹ 42200 crores
Expenditure: ₹ 45200 crores budget.

c. Revenue: ₹ 42200 crores
Expenditure: ₹ 40200 crores budget.
Answer:
a. Balanced budget
Balanced budget → Revenue = Expenditure (Income)

b. Deficit budget
Deficit budget → Expenditure > Revenue

c. Surplus budget
Surplus budget → Expenditure < Revenue

Question 6.
Which of the following tax, on which imposing tax rate, affects the living condition of the common man? Why?
Corporate tax
Sales tax
Answer:
Imposing high tax rate on sales tax adversely affects the living condition of the common man. So impose less tax on the commodities of the common man. But increasing tax on corporate income tax will not be a burden for the public.
Reasons:

  • Increasing tax on corporate income tax decreases the profit of the company only.
  • Increasing sales tax rate is unfavourable for the life of poor people also.

Question 7.
Complete the given activity, prepared to find out different types of budget and its features.
Kerala Syllabus 10th Standard Social Science Important Questions Chapter 5 Public Expenditure and Public Revenue 3
Answer:
Kerala Syllabus 10th Standard Social Science Important Questions Chapter 5 Public Expenditure and Public Revenue 4

Question 8.
Complete the following sun diagram finding out the governmental activities beneficial for the society.
Kerala Syllabus 10th Standard Social Science Important Questions Chapter 5 Public Expenditure and Public Revenue 5
Answer:

  • Protection of environment
  • Basic infrastructure development
  • Reduce poverty and unemployment
  • Social security measures
  • Reduce inequality
  • Economic activities
  • Maintain stability
  • Defence and law and order
  • Social services.
  • Rural development
  • Drinking water programmes

Question 9.
The given graph shows the major expenditure items of the central govt. Budget. Find out the answers for the following questions on the basis of the graph.
Kerala Syllabus 10th Standard Social Science Important Questions Chapter 5 Public Expenditure and Public Revenue 6
Answer:
a. The expenditure item on which the government spends more money is for – repayment of principal and interest on loans.
b. The lowest expenditure item is – other public services, Parliament, tax revenue, foreign affairs, etc.

c. Expenditure items in the ascending order.
No. 8 – Other public services

  • 6 – Police,
  • 7 – Economic services
  • 9 – Social services
  • 5 – Pension
  • 4 – Grants to states and Union Territories
  • 2 – Defence
  • 3 – Subsidy
  • 1 – Repayment of principal and interest

d. Expenditure items to be reduced.
i. Repayment of principal and interest
ii. Defence

Question 10.
Tax, tax burden and taxpayer are the different terms related to tax. How are they related to each other?
Answer:
Tax: Tax is a compulsory payment to the government made by the public for meeting expenditure towards welfare activities and developmental activities. It is the duty of a citizen to pay tax. Tax revenue constitutes the lion share of public revenue.

Tax burden: The loss in the income due to the payment of tax is called ‘tax burden’. When a person pays the tax imposed on him, the burden of the tax is borne by him.

Taxpayer: The person who pays the tax is called the taxpayer.

Question 11.
Classify the following as tax revenue and non-tax revenue.

  • Interest
  • Profit
  • Corporate tax
  • Land tax
  • Personal income tax
  • Grants

Answer:

Tax revenue Non-tax revenue
Corporate Tax
Personal income tax
Land tax
Interest
Profit
Grants

Question 12.
List the different types of goods and services tax.
Answer:

  • The tax imposed by the central government is known as Central GST.
  • The tax imposed by the state government is known as State GST.
  • The GST on interstate trade is imposed and collected by the central government. It is known as Integrated GST.

Answer the following. Score 4 each

Question 1.
Explain with examples, how direct tax and indirect tax differ.
Answer:
When a person pays the tax imposed on him, it is called direct tax. The taxpayer bears the tax burden. High expenditure is incurred for tax collection. Eg: Personal income tax, corporate tax

Tax imposed on one person and the tax burden is transferred to another person, it is called indirect tax. Tax burden is not felt by the taxpayer. Low expenditure is incurred for tax collection. Eg: GST.

Question 2.
Complete the table listing the features of direct tax and indirect tax.

Direct Tax Indirect tax
Paid by the person on whom it is imposed Imposed on one and paid by another

Answer:

Direct Tax Indirect tax
Tax burden is felt by the taxpayer. Tax burden is not felt by the taxpayer.
High expenditure is incurred for tax collection. Low expenditure is incurred for tax collection.

Question 3.
Write the features of the important direct taxes in India.
Answer:
Personal income tax: It is a tax imposed on the income of the individuals beyond a limit prescribed by law. Tax rate increases with income. Tax is imposed on income beyond a certain limit.
Corporate tax: It is the tax imposed on the net income or profit of a company.

Question 4.
Write any four reasons for the increase in public expenditure.
Answer:

  • Development of basic infrastructure due to population growth.
  • Increase in defence expenditure
  • Social welfare activities
  • Urbanisation

Question 5.
Increase in direct tax helps to reduce the inequality in the income of citizens. Why?
Answer:
Indirect tax affects both the rich and poor alike. The principle of the ability to pay is not applicable here. Direct tax is based on the principle of ability to pay. For eg: sales tax is an indirect tax. It is imposed along with the price of goods. It affects all those who buy the goods. But personal income tax is a direct tax.

It is imposed on the income of a person. Tax burden is borne by the person on whom it is imposed. So to reduce the inequality in the income of citizens, it is desirable to increase the tax rate on direct taxes.

Question 6.

Year Internal Debt (In crore) External Debt (In crore) Total Debt (In crore)
2013-14 4240766 184580 4424346
2014-15 4775900 194286 4970186
2015-16 5298216 205459 5503675

Analyze the table and enter your conclusions.
Answer:

  • Internal debt is more than external debt in all periods.
  • The rate of increase in internal debt is more than the rate of increase of external debt.
  • Compared to 2013-14, the public debt of 2015-16 increased to ₹ 1078329 crore.
  • Public debt is always on the increase.

Question 7.
India’s public debt is increasing. Write its merits and demerits.
Answer:
The increase in public debt is beneficial as well as harmful. increase in public debt, some goods will have to be sold to foreign countries at a price less than in the internal market. This affects the economic growth of the country adversely. The value of money comes down due to inflation. Rise in price will become acute.

Question 8.
Public finance is presented through the budget. What are included in a budget? How many types of budget are there?
Answer:

  • Budget is the financial statement showing the expected income and expenditure of the government during a financial year.
  • The budget includes: Activities the government proposes to implement:.
  • Sources of income
  • Important expenditure items.

There are three types of budget.

  1. Balanced budget: Revenue = Expenditure
  2. Deficit budget: Expenditure > Revenue
  3. Surplus budget: Revenue > Expenditure

Question 9.
Explain fiscal policy and its objectives.
Answer:

  • The policy of the government regarding public revenue, public expenditure and public debt is called fiscal policy. It is implemented through budget. Fiscal policy influences a country’s progress. A sound fiscal policy helps in nourishing developmental activities and to attain economic growth. The following are the goals of fiscal policy.
  • Attain economic stability
  • Create employment opportunities
  • Control unnecessary expenditure

Control prices.

  • Undertake welfare activities.
  • Fix tax structure.

Question 10.
Tax is an instrument to control inflation and deflation. Explain.
OR
Central government controls inflation and deflation through its fiscal policy. Explain how.
Answer:
A general rise in price of commodities is called inflation. When there is inflation, the value of money comes down. In this stage, taxes are increased and the prices increase considerably. This reduces the purchasing power of the people. Prices fall when goods remain unsold.

A general fall in price of commodities is called deflation. When there is deflation, the value of money goes up. In this stage, taxes are reduced and the prices decrease. This increases the purchasing power of the people. There will be an increased demand for goods in the market and results in an increase in price. Inflation and deflation can be controlled because tax structure is determined by fiscal policy.

Question 11.
In the central budget of 2015-16, the expenses on repayment of principal and interest is X446145 crore, defence is f246727 crore and on subsidy is ₹ 243811 crore. Analyze this and prepare a note.
Answer:
Huge amount is paid as repayment of principal and interest for the debt taken by the central govt. Expenses on defence and subsidy are also high. These expenses are not productive. These unproductive expenses can be reduced by reducing the amount of debt, reducing defence expenditure and limiting subsidy to only those who deserve. This can lead the nation to economic progress.

Question 12.
Differentiate between surcharge and cess with example.
Answer:
Surcharge: Additional tax imposed on tax is called surcharge. Generally, surcharge is imposed for a specific period of time. Example: People with an income of more than rupees ten lakhs pay ten percentage surcharge. Tax on rupees ten lakhs is estimated. Then ten percentage of the tax is estimated as surcharge and added to the tax.

Cess: Additional tax imposed by the government for certain specific purposes is called cess. Cess will be discontinued when enough money is received. Example: Education cess imposed along with personal income tax.

Question 13.
Differentiate between internal debt and external debt.
Answer:
Internal debt: Internal debts are the loans availed by the government from individuals and institutions with in the country.

External debt: External debts are the loans availed from foreign governments and international institutions.

Question 14.
Which are the different- sources of income of the state government? ‘
Answer:

  • State GST
  • Stamp duty
  • Land tax

Question 15.
What are the important reasons for the increase of public expenditure? Write two examples each for developmental expenditure and non-developmental expenditure.
Answer:

Reasons for increase in Public expenditure:

  • Development of basic infrastructure due to population growth.
  • Increase in defence expenditure
  • Social welfare activities
  • Urbanisation

Developmental expenditure:

  • Constructing roads and bridges, starting new enterprises.
  • non-developmental expenditure: Expenditure on war, on payment of interest.
  • Question 16.
    What is meant by deficit budget? List the major items of expenditure included in India’s budget?
    Answer:

Deficit budget: When expenditure is more than income, it is called deficit budget.
Items of expenditure included in India’s budget:

  • Interests and payments
  • Defence
  • Subsidies
  • Grants to States and Union Territories
  • Pension
  • Police
  • Social Services (Education, Health)
  • Economic Services (Agriculture, Industry)
  • Grants to foreign governments
  • Other public services

Question 17.
Which are the major taxes merged into GST in India?
Answer:

  • Central excise duty
  • Service taxes
  • Central sale tax
  • State value-added tax
  • Luxury tax
  • Advertisement tax
  • Octroi
  • Entertainment tax

Answer the following. Score 5 each

Question 1.
Explain how value added tax is calculated, citing an example.
Answer:
A product reaches the consumers through different stages. Value is added at each stage. Taxes which are imposed on such value are called value-added tax.
Example:
A wholesale trader bought a cycle for ₹ 3000 from a factory. He sold it to a retail trader for ₹ 4000. Retailer sold it to a consumer for ₹ 4500. The tax rate is 10%. Calculate the VAT and the total price of the cycle.
Kerala Syllabus 10th Standard Social Science Important Questions Chapter 5 Public Expenditure and Public Revenue 7

Question 2.
The different stages of production and sale of a silk saree are given. Raw materials cost ₹1000. Producer sells it to wholesaler for ₹2000. Retailer gets it for ₹2500 and he in turn sells it for ₹3000 in the market. Suppose the tax rate is 10%. Identify the value added, tax collected and the total price of the saree.
Answer:
Kerala Syllabus 10th Standard Social Science Important Questions Chapter 5 Public Expenditure and Public Revenue 8

Question 3.
Explain the different sources of non-tax revenue.
Answer:
Fees, fines and penalties, grants, interest and profit are the sources of non-tax revenue.

  • Fees: Fees is the reward collected for the government’s services. Eg: Registration fee, license fee, etc.
  • Fines and penalties: Fines and penalties are punishments for violating the laws.
  • Grants: Grants are the financial aid provided by one government or organisation for meeting a specific objective. Eg: Grants by central government to local self-governments.
  • Interest: Interest is the amount received for the loans provided by government to various enterprises, agencies, etc. Eg: Interest on loans given by government to agencies or institutions.
  • Profit: Income earned by public sector enterprises or enterprises operated by government. Eg: profit from Indian Railways.

Question 4.
Is it direct tax or indirect tax that affect common people mostly? Analyze this based on the indicators.
Tax burden
Rise in prices
Inequality in income
Answer:
When a person pays the tax imposed on him, it is the direct tax. The burden of the tax is borne by him. It is based on the principle of ability to pay. So it does not affect the others.

Indirect tax is imposed on one and transferred to another. For eg: sales tax is imposed on the seller. But it is given by the consumer. Increase in indirect taxes results in rise in prices. Since inequality in income prevails, it affects the common people adversely.

Question 5.
What are the type of taxes imposed by the governments? Find out the features of these taxes with examples.
Answer:
Taxes are the important sources of government’s income. Government meets its expenditure by collecting various taxes. It is the duty of the citizen to pay tax. Taxes are of two types.

  1. Direct tax
  2. Indirect tax
  • a. Direct tax: Taxpayer alone bears the burden of the tax. He cannot transfer the burden of the tax to another person. The following are some of the examples of direct taxes.
  • Personal income tax: It is a tax imposed on a person when income is beyond a limit prescribed by law. As income increases, tax burden also increases.
  • Corporate tax: It is a tax imposed on the net income of a company.

b. Indirect tax: In the case of indirect taxes, taxes are imposed on one person but paid by another person. Taxpayer can transfer the burden of tax to others. Following are the important indirect taxes.

Goods and service tax: From 1st July 2017 onwards, many indirect taxes imposed by the central and state governments have been merged and the uniform tax is the goods and services tax. The major taxes merged into GST are central excise duty, service taxes, central sale tax, octroi, etc.

Answer the following. Score 6 each

Question 1.
Explain how public expenditure, public revenue and public debt become beneficial to a country.
Answer:
Public Expenditure
The expenditure of the government is known as public expenditure. These expenses aimed at the welfare of the people can be grouped into developmental expenditure and non-developmental expenditure. Developmental expenditures are those that are for the construction of roads, bridges and harbours and for establishing educational institutions. Non-developmental expenses are those that are spent on war, interest and pension.

All these expenditures help in the growth and development of social and economic sectors of the country. Welfare activities like pension to weaker sections of the society are aimed at the common good of the country.

Public Revenue
The income of the government is known as public revenue. Public revenue can be classified into tax revenue and non tax revenue. Taxes are of two types-direct tax and indirect tax. The important direct taxes are personal income tax and corporate tax. Value-added tax, excise duty, customs duty, service tax and sales tax are the important indirect taxes.

The sources of non-tax revenue are fees, fines and penalties, grants, interest and profit. The income from these sources enable the government to meet the public expenditures. With an increase in revenue, the government can undertake more developmental and welfare activities. This will lead to national progress.

Public Debt
The loans taken by the government are called public debt. It includes internal debt from within the country and external debt from foreign governments and international institutions. When the income of the government is insufficient to meet the expenses, government borrows money. Public debt is a financial liability. But it will led to the economic growth and development of the nation in future.

 

Kerala Syllabus 10th Standard Social Science Important Questions