Public Finance in India

💰 Public Finance in India – SSC CHSL Study Guide with Emojis 🇮🇳✨

Here’s an easy-to-understand, emoji-rich summary of all the key points from the “Public Finance in India” PDF, perfect for SSC CHSL revision:

🏦 What is Public Finance?

• Study of government’s income and spending 💸.
• Covers how government collects (revenue) and spends (expenditure) money.
• Mentioned in ancient India’s Arthashastra 📜 (Kautilya).

📊 Budget Basics

• Budget: Annual financial statement showing government’s estimated income & expenditure for the coming year 📅.
• Layers: India’s federal system means both Central and State governments have their own budgets 🏛️🏛️.
• Constitutional Articles:
  • Union Budget: Article 112 🏛️
  • State Budget: Article 202 🏛️

💼 Types of Budget

• Revenue Budget 💵:
  • Revenue Receipts (taxes, non-taxes)
  • Revenue Expenditure (salaries, subsidies, interest, etc.)
• Capital Budget 🏗️:
  • Capital Receipts (loans, sale of assets)
  • Capital Expenditure (building roads, buying machinery, loans to states, etc.)

💸 Revenue Receipts

• Do NOT create liability 🚫📉
• Types:
  • Tax Revenue:
    • Direct Taxes (Income Tax, Corporation Tax, Wealth Tax, Gift Tax) 💰
    • Indirect Taxes (Customs Duty, GST) 🛒
  • Non-Tax Revenue:
    • Interest receipts, dividends, profits, fees, foreign grants 💵

🏦 Revenue Expenditure

• For normal government functioning 🏢
• Not for creating assets 🚫🏗️
• Examples: Salaries, pensions, subsidies, interest payments, grants 🎓

🏗️ Capital Receipts

• Create liability or reduce assets 🏦
• Examples: Loans (to be repaid), sale of government assets (disinvestment), small savings, bonds 🏦💳

🏢 Capital Expenditure

• For creating assets or reducing liabilities 🏗️
• Examples: Buying land, building infrastructure, investments, loans to states/PSUs 🏢

📈 Types of Budgets

• Balanced Budget ⚖️: Revenue = Expenditure
• Surplus Budget ➕: Revenue > Expenditure
• Deficit Budget ➖: Revenue < Expenditure

🧮 Budgetary Deficits

🏦 Fiscal Policy

• Government’s strategy for spending, taxation, and borrowing 💼.
• Goals:
  • Full employment 👷
  • Price stability 💹
  • Economic growth 📈
  • Fair distribution ⚖️
  • External stability 🌏
  • Capital formation 🏗️
  • Regional balance 🗺️
• Main Tools:
  • Taxation 💰
  • Public Expenditure 🏢
  • Public Debt (Borrowing) 💳

🏛️ Finance Commission

• Quasi-judicial body under Article 280 ⚖️
• Set up every 5 years to decide how taxes are shared between Centre & States 🤝
• Reduces fiscal imbalances and promotes inclusiveness 👫
• Current (15th) Chairman: N.K. Singh (since 2017)

Use these emojis and points for quick, easy revision of Public Finance in India for SSC CHSL! Good luck! 🍀