Flashcards on Indian Economy: Taxation and Fiscal Policy

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What is taxation?

Taxation is the process by which the government levies and collects taxes from individuals and businesses to fund public services and programs.

What is fiscal policy?

Fiscal policy refers to the use of government spending and taxation to influence the overall economy.

What are direct taxes?

Direct taxes are taxes levied directly on individuals or businesses, such as income tax and corporate tax.

What are indirect taxes?

Indirect taxes are taxes levied on the consumption of goods and services, such as sales tax and excise duty.

What is the Goods and Services Tax (GST)?

GST is a comprehensive indirect tax levied on the supply of goods and services in India.

What is progressive taxation?

Progressive taxation is a tax system where the tax rate increases as the taxable income increases.

What is regressive taxation?

Regressive taxation is a tax system where the tax rate decreases as the taxable income increases.

What is a budget deficit?

A budget deficit occurs when the government's spending exceeds its revenue in a given period.

What is a budget surplus?

A budget surplus occurs when the government's revenue exceeds its spending in a given period.

What is the purpose of taxation?

The purpose of taxation is to generate revenue for the government and fund public services and programs.

How does fiscal policy impact the economy?

Fiscal policy can influence economic activity by adjusting government spending and taxation levels.

What are the functions of the Reserve Bank of India?

The Reserve Bank of India functions as the central bank and regulates the country's monetary and financial system.

What is the Capital Gains Tax?

The Capital Gains Tax is a tax on the profit made from the sale of certain assets, such as stocks and real estate.

What is the difference between direct and indirect taxes?

Direct taxes are levied directly on individuals or businesses, while indirect taxes are levied on the consumption of goods and services.

What is the role of taxation in redistribution of wealth?

Taxation plays a role in redistributing wealth by imposing higher taxes on the wealthy and providing social welfare programs for the less fortunate.

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Test Your Knowledge


What is the purpose of taxation?



What is the Goods and Services Tax (GST)?



What is fiscal policy?



What is the Capital Gains Tax?



What is regressive taxation?



What is the role of the Reserve Bank of India?



What are direct taxes?



What is a budget deficit?



What is progressive taxation?



How does fiscal policy impact the economy?




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