Q.

Hugh Dalton’s Classification of Public Expenditure:

1. Expenditures on political executives: i.e. maintenance of ceremonial heads of state, like the president.

2. Administrative expenditure: to maintain the general administration of the country, like government
department of offices.

3. Security expenditure: to maintain armed forces and the police forces.

4. expenditure on administration of justice : include maintenance of courts, judges, public prosecutors.

5. Developmental expenditures: to promote growth and development of the economy, like expenditure on
infrastructure irrigation, etc.

6. Social expenditures: on public health, community welfare, social security, etc.

7. Public debt charges: include payment of interest and repayment of principle amount.

Q. Short Note:

i) Revenue Budget: This financial statement includes the revenue receipts of the government ex: revenue
collected by way of taxes & other receipts.

ii) Capital Budget: This part of the budget includes receipts & expenditure on capital account projected
for the next financial year.

iii) Surplus Budget : The budget is a surplus budget when the estimated revenues of the year are greater
than anticipated expenditures.

iv) Deficit Budget: Deficit budget is one where the estimated government expenditure is more than
expected revenue.

Q. Non tax Revenues: Non tax revenue comprises all revenues apart from taxes accumulated to the
government. Non tax revenues are funds that are generated from internal sources.

Q. Important sources of Non tax revenues include:

a) Special Assessment: This tax is imposed to a certain category of members of a community who are
generally benefited from governmental activities or public functions like constructions of road, railways,
parks, etc.

b) Surplus of Public Enterprises: The government has arranged public sector enterprises that are
concerned in commercial activities.

c) Fees: A fee is a significant source of managerial non tax revenue charged by Governmental authorities
for depiction services to the members of the public.

Q. Tax : Taxes are compulsory payment to government without expectation of direct return in benefit to
the tax payer.”
Q. Essential/Features/Characteristics of a good tax:

First, a good tax system should lead to fair and equal distribution of wealth in the community.

Second, It should be composed in such a way that it yields sufficient revenue to the government.

Third, the cost on collection of taxes should not be excessive.

Q. Unemployment :

Unemployment is defined as a situation where someone of working age is not able to get a job but would
like to be in full time employment.

Q. Types of Unemployment :

1. Structural Unemployment : Structural unemployment is one of the main types of unemployment within
an economic system. It focuses on the structural problems within an economy and inefficiencies in labor
markets.

2. Frictional Unemployment: Frictional unemployment is another type of unemployment within an

economy.

3.Cyclical unemployment : Cyclical Unemployment is a type of unemployment that occurs when there is
not enough aggregate demand in the economy to provide jobs for everyone who wants to work.

4. Seasonal Unemployment: The seasonal Unemployment means the demand for a specific kind of work
and workers change with the change in the season.

5. technological unemployment : The technological Unemployment is caused when the individuals lose
their jobs due to the technological advancement.

6. Chronic Unemployment : The Chronic Unemployment means prolonged unemployment in the

economy.

7. Disguised Unemployment : The Disguised Unemployment refers to the work area where surplus
manpower is employed out of which some individuals have zero or almost zero marginal productivity
such that if they are removed the level of output remains unchanged.

8. Casual Unemployment : The Casual Unemployment is when the worker is employed on a day-to- day
basis for a contractual job and has to leave it once the contract terminates. Simply, the inevitable time
delay when a worker transits form one job to another due to the expiration of previous job contract is
called as the casual unemployment.