Economy & Finance • Topic 3 of 4

Budget, Tax & Fiscal Policy

The Union Budget (Article 112) is the government's annual financial statement, presented by the Finance Minister, usually on 1 February. Taxes are direct (income, corporate) or indirect (GST, launched 1 July 2017).

Two families of tax

TAXES Direct tax paid directly: income tax, corporate tax Indirect tax on goods/services: GST (1 July 2017)
Direct tax is paid straight to the government; indirect tax is collected through what you buy.
Fiscal vs monetary. Fiscal policy = the government's taxing and spending (the Budget). Monetary policy = the RBI's control of money and interest rates. SSC loves to swap these — keep them straight.

GST is "One Nation, One Tax" (launched 1 July 2017). The fiscal deficit is the gap between total expenditure and total receipts (excluding borrowings).

✅ Solved examples

1. Under which article is the Union Budget presented?
Article 112 (the Annual Financial Statement).
2. When was GST launched in India?
1 July 2017.
3. Income tax is an example of which type of tax?
A direct tax.
4. Who presents the Union Budget?
The Finance Minister.

✏️ Practice — try these, take hints as needed

1. GST is an example of which kind of tax?
On goods/services.
—
—
Indirect tax
2. The Union Budget is usually presented on which date?
Start of February.
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—
1 February
3. Government taxation and spending policy is called ___ policy.
Not monetary.
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—
Fiscal policy
4. GST is promoted as "One Nation, One ___".
Single word.
—
—
Tax
5. Corporate tax is a ___ tax.
Paid directly.
—
—
Direct

📝 Topic test — 8 questions

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