Chapter 14, Problem 12P

To determine

Concept Introduction

Government Revenue - The fiscal tool which implies the money received by the government is the Government revenue. The chief sources of Public Revenue are Tax Revenue, direct and indirect and Non-Tax Revenue (dividends and profits from the PSUs).

Government Expenditure - The government spending on final goods and services as public consumption, public investment, transfer payments and capital transfers is the spending tool of the fiscal policy.

Budget Deficit - The excess of government expenditure over government revenue is the budgetary deficit of the government. It is a significant indicator of the.