Kerala Syllabus Class 7 Social Science: Chapter 10 Budget: The True Record  of Development - Questions and Answers | Teaching Manual 


Questions and Answers for Class 7 Social Science (English Medium) ബജറ്റ്: വികസനത്തിന്റെ നേർരേഖ | Text Books Solution Social Science (English Medium) Chapter 10 Budget: The True Record  of Development - Teaching Manual | Teachers Handbook
ഈ അധ്യായത്തിന്റെ Teachers Handbook, Teaching Manual എന്നിവ ഡൗൺലോഡ് ചെയ്യാനുള്ള ലിങ്ക് ചോദ്യോത്തരങ്ങളുടെ അവസാനം നൽകിയിട്ടുണ്ട്.

ഈ ബ്ലോഗ് അഡ്‌മിൻറെ രേഖാമൂലമുള്ള അനുമതിയില്ലാതെ ഈ ബ്ലോഗിൽ നൽകിയിരിക്കുന്ന ചോദ്യോത്തരങ്ങൾ, ഇതേരീതിയിലോ പി.ഡി.എഫ് രൂപത്തിലോ, മറ്റേതെങ്കിലും ഡിജിറ്റലോ, പ്രിന്റഡ് ഉൾപ്പെടെയുള്ള ഏതെങ്കിലും രൂപങ്ങളിലേക്കോ മാറ്റി മറ്റൊരു വെബ്സൈറ്റിലോ, ബ്ലോഗിലോ, യുട്യൂബ്, സോഷ്യൽ മീഡിയാ ഗ്രൂപ്പുകളിലോ ഉൾപ്പെടെ ഒരിടത്തും പ്രചരിപ്പിക്കാൻ പാടില്ലാത്തതാകുന്നു.

Std 7: Social Science Chapter 10: Budget: The True Record of Development - Questions and Answers
♦ Have you listened to the conversation of  the members of this family?
What are the expenses mentioned in the conversation? (Textbook Page: 152)
• paying off debts 
• buying medicines
• paying electricity bills
• buying clothes
• paying for chitty

♦ Which are the needs in our daily life that we spend money on? 
• food 
• health
• education
• travell
• clothes
• entertainment
• electricity
• phone
• news paper

♦ What is Family Expenditure?
The total amount spent by a family for food consumption and non-food consumption for a particular period is called the family expenditure. 

♦ How to categorize Family Expenditure?
i. Expected Expenditure
Expected expenditure is the expenditure that is expected in a family for particular period. This can be estimated as monthly and annually. 
e.g., food, electricity bills, etc

ii. Unexpected Expenditure
The expenditure that a family cannot fix in advance for a particular period and which occurs accidentally is termed unexpected expenditure. 
e.g., natural disasters, diseases, etc.

♦ Complete the list by giving more examples for expected and unexpected expenditure.
♦ The picture shows the different fields in which the members of Nikhil’s family are engaged. Among them, there are people who engage in occupation and those who do not. Let’s see who they are. (Textbook Page: 154)
♦ What is Family income?
• Family income is the total income of the family in a particular period from different sources. 
• By spending the income effectively, a family can develop the habit of saving, deal with unexpected expenditure and improve the standard of life. 

♦ What is Family Budget?
• Family budget is the financial plan that is prepared based on the expected income
and expenditure of a family in a particular period. 
• The family budget that can be prepared on a monthly or annual basis will differ according to the size, income and needs of the family. 

♦ What are the factors that affect your family budget? 
• Increase in electricity bill
• Increase in cooking gas prices 
• Increase in petrol and diesel prices
• Increase in medicine prices 
• Natural disaster
• Epidemics
• Increase in various types of bills
• Price hike
• Tax increase
• War

♦ When does the family income become stable?
The family income becomes stable when the income is more than the expenditure,
or when the income and the expenditure are equal. 

♦ How can we reduce the expenditure of the family?
• use locally available resources for food.
• cultivate your own food resources.
• Make maximum use of the public distribution systems and fair-price shops 
• Depend on government institutions for treatment and education.
• Buy household items together as much as possible
• Use electricity, telephone, etc. only as needed.
♦ Given below is the model of the monthly budget of a family.
i. What is the speciality of this family budget?
expenditure is more than the income

ii. What suggestions can you give to turn this family budget into a surplus one?
• Increase the source of income
• Reduce expenditure
• Spend only for what you need.
• Control luxuries and non-essential expenses.

♦ What are the benefits of a family budget? Add more to the table.
• Recognising different sources of income
• Adjusting the expenditure to match the income
• Moderate expenditure is practised
• Over expenditure can be identified and controlled
• Sense of self-reliance
• Financial growth and well-being can be achieved.

♦ What are the activities does the government spend money on?
• Road construction 
• welfare Pension 
• Gas pipeline 
• Drinking water supply
• salary 
• construction of hospitals
• interest 
• social welfare schemes
• expenses for defence 
• Health and safety 
• Port construction 
• Energy production 
• Airport construction 
• Environmental protection 
• Public distribution system

♦ What is Public expenditure?
• Public expenditure is the amount spent by the government for developmental and non-developmental activities. 
• The public expenditure increases as the government expands its activities. 
• Public expenditure can be classified into developmental and non-developmental expenditure. 

♦ What is Developmental Expenditure?
• Expenditures directly related to economic and social development of the country are called developmental expenditure. 
• They contribute greatly to the economic growth of a country by stimulating its real economic condition and production. So, these developmental expenditures are also known as production costs. 
• The expenditure spent for constructing roads, bridges, harbours and to start new enterprises and educational institutions are considered as developmental expenditure. 

♦ What is Non-Developmental Expenditure?
• Non-development expenditure is the one incurred by the government on a regular basis for national interest and public services. 
• Expenses involved in defence, interest, pension, epidemic and natural disasters come under this.

♦ Categorise the following expenditure as developmental expenditure and non-developmental expenditure and list them in the table given below.
• interest 
• energy generation
• epidemic 
• welfare pension
• liability 
• subsidies  
• construction of roads
• construction of schools
• war
• defence
• public administration
• industries
 Developmental Expenditure  Non-Developmental Expenditure 
 • energy generation
 • construction of roads
 • construction of schools
 • industries		 • interest 
 • epidemic 
 • welfare pension
 • liability 
 • subsidies 
 • war
 • defence
 • public administration
♦ What is Public Revenue?
• The government needs a huge amount of money for developmental and welfare activities. 
• The public revenue is the wealth that the government collects from various sources to satisfy these needs.
• This is an important factor of the government budget. 

♦ Explain the different sources of public revenue?
The government makes revenue from two major sources they are tax revenue and non-tax revenue.
i. Tax revenue
This is the revenue from taxes
eg: income tax, building tax, sales tax, entertainment tax etc.

ii. Non-tax revenue
This is the revenue from sources other than taxes. Fee, fine, grants, profit and interest are examples. 

♦ What is Tax?
Tax is the amount of money that the public should remit to the government to bear the expenses of welfare activities and developmental activities which are carried out in public interest. The person who remits taxes is called a taxpayer. 

♦ Differentiate Direct tax and Indirect tax
i. Direct tax is the tax: remitted by the person on whom tax is levied. This means that the taxpayer himself bears the burden of the tax. Income tax and building tax are examples. 

ii. Indirect tax: Here, the tax levied on one individual is paid partially or completely by another. Sales tax and entertainment tax are examples of indirect tax. 

♦ Find more examples of direct and indirect taxes and list them.
 Direct Tax  Indirect Tax
 • Property tax
 • Corporate tax
 • Personal income tax 
 • Building tax
 • Professional Tax		 • Excise duty
 • Service tax
 • G.S.T
 • Customs duty
 • Entertainment tax
 • Sales tax 

♦ What is Goods and Services Tax (GST)?
• Goods and Services Tax (GST) is a unified indirect tax that came into effect from July 1, 2017 after the 101st amendment of the Constitution, to implement the principle of a unified tax for the nation. 
• If the revenue from sales is more than the amount fixed by the government in a financial year, the traders must avail GST registration.

♦ What are the current GST rates in India?
 At present, the consumer has to pay GST at the rates of 0%, 5%, 12%, 18% and 28%.
♦ What is ‘budget’? Which are its three types?
• The budget is a financial document of the expected income and expenditure by the government for a specific financial year.  
• In our country, the budget is prepared for one financial year starting from April 1st to March 31st. 
• The finance minister presents the budget. 
• As per Article 112 of the Constitution of India, the union budget is also the annual financial audit of the country.
• Budgets can be divided into three categories on the basis of revenue and expenditure.

♦ Types of Budget
● Surplus Budget: More income, less expenditure
● Balanced Budget: Equal income and expenditure
● Deficit Budget: Less income, more expenditure

♦ What is public debt? Write two types of public debt?
• The government has to take loans to materialise the developmental and welfare activities and to meet various administrative needs when the income is not sufficient
to satisfy various needs. 
• The loans thus availed by the government are known as the public debt. 
• Loans are taken from within and outside the country. These debts are known as domestic debts and foreign debts respectively. 

● Internal debt: The loans availed by the government from individuals and institutions inside the country are known as domestic debt.

● External debt: Foreign debt is the loan availed from other countries and international organisations. 

♦ What is fiscal policy?
• Fiscal policy is a comprehensive government policy concerning the public revenue, public expenditure and public debt. 
• This policy prepared by the finance department is implemented through the budget. 
• It is also a policy that gives guidelines to the government to improve the current financial situation and attain financial stability.

♦ What are the objectives of Fiscal Policy?
• Accelerate the economic growth
• Create job opportunities
• Regulate additional expenditure
• Eliminate the inequality in the distribution of revenues




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