By reviewing Kerala Syllabus 7th Standard Social Science Notes Pdf Download and Class 7 Social Science Chapter 10 Budget: The True Record of Development Questions and Answers Kerala SCERT Solutions, students can improve their conceptual understanding.
Class 7 Social Science Chapter 10 Budget: The True Record of Development Notes Questions and Answers
Budget: The True Record of DevelopmentClass 7 Notes Pdf
Class 7 Social Science Chapter 10 Question Answer Kerala Syllabus
Question 1.
What are the expenses mentioned in the conversation?
Answer:
Paying off debts, paying the electricity, Buying medicines, Paying for chitty
Question 2.
Which are the needs in our daily life that we spend money on?
Answer:
- Food
- Health
- Buying dresses
- Entertainment
- Buying vehicles
- Mobile phone bills, internet, and digital services
Question 3.
Complete the list by giving more examples for expected and unexpected expenditure.
Answer:
| Expected Expenditure | Unexpected Expenditure |
| Education | Accident |
| Medical Expenses | Device replacement |
| Food | Interest rate hikes |
Question 4.
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.
Answer:
| Family Members | Area of Activity/ Source of Income | Income Yes/No |
| Nikhil | Student | No |
| Father | Tailoring | Yes |
| Mother | Saleswoman | Yes |
| Grandfather | Agriculture | Yes |
| Grandmother | Pensioner | Yes |
Question 5.
Which are the sources of income of your family?
Answer:
(Hints: Here are some common sources of family income)
Salaries: Money earned from jobs or work.
Business Profits: Money made if someone in the family owns a business.
Freelance Work: Income from part-time or side jobs, like tutoring or projects.
Investments: Money earned from savings or investments, like stocks or interest from a bank.
Rent: Money received if the family owns property and rents it out.
Pensions: Money from retirement funds if grandparents or parents are retired.
Gifts or Inheritances: Money given by relatives or inherited from family.
Question 6.
Given below is the model of the monthly budget of a family.
a. What is the speciality of this family budget?
b. What suggestions can you give to turn this family budget into a surplus one?
Answer:
a. This family budget shows that expenditure is greater than income.
b. This family can reduce their unnecessary miscellaneous expenditure, which helps them to reduce their deficit and make their budget surplus.
Question 7.
What are the benefits of a family budget?
Answer:
- Recognising different sources of income.
- Adjusting the expenditure to match the income.
- Moderate expenditure is practised.
- Reduces Financial Stress.
- Teaches Financial Responsibility.
- Better Money Management.
Question 8.
Discuss what welfare and developmental activities have been done in your area using government funds and prepare a note.
Answer:
In our area, the government has improved life with several welfare and development activities: Roads and Bridges: New roads and small bridges were built, making travel easier and safer.
Healthcare Centers: Health centers were set up and upgraded, providing nearby medical help. Schools and Education: Schools were renovated, with new classrooms, computer labs, and scholarships for low-income students.
Water Supply and Sanitation: Clean water pipelines and public toilets were installed.
Parks and Playgrounds: New parks and playgrounds were made, and trees were planted to improve the environment.
Question 9.
Categorise the following expenditure as developmental expenditure and non-developmental expenditures and list them in the table given below.
Interest
construction of roads
energy generation
construction of schools
epidemic
war
welfare pension
defence
liability
public administration
subsidies
industries
Answer:
| Developmental Expenditure | Non-Developmental Expenditure |
| Construction of roads | Interest |
| Energy generation | War |
| Construction of schools | Defence |
| Epidemic (health spending) | Liability |
| Welfare pension | Public administration |
| Subsidies | |
| Industries |
Question 10.
The public expenditure of the Central Government from 2018-19 to 2022-23 is given below.
Analyse the graph on the public expenditure of the government and write your conclusions.
Answer:
The expenditure of the government in 2018-19 is 23.14 lakh crores. It increased to 26.87 lakh crores in 2019-20. As compared to 2020-21 (32.09 lakh crores), it was around 37.93 lakh crores in 2021-22. In 2022-23, it was 41.88 lakh crores.
Question 11.
Find more examples of direct and indirect taxes and list them.
Answer:
| Direct Taxes | Indirect Tax |
| Income Tax | Goods and Services Tax (GST) |
| Corporate Tax | Value Added Tax (VAT) |
| Property Tax | Entertainment Tax |
| Gift Tax | Service Tax |
Extended Activities
Question 1.
Prepare your family budget after collecting details of income and expenditure from your parents.
Answer:
(Hint: As per the given example below, prepare your family budget with the help of your parents and elders).
Total Income = 7500
Total Income = 7500
Total Expenses: 7100
Savings: 400
Question 2.
Collect the news report on the developmental and welfare activities of the state and central governments and prepare a magazine.
Answer:
Question 3.
The GST rates that we pay on the receipt of goods and services are given below. Find out the services and goods on which each tax is levied and complete the table given below.
Answer:
| Tax rates | Goods | Services |
| 0% | Egg, Milk, Bread, Vegetables etc. | Health, Public Transportation etc. |
| 5% | Sugar, coffee powder, Tea powder, edible oil etc. | Economy air travel, Railway etc. |
| 12% | Butter, cheese, ghee, etc. | restaurant services (non-AC), business class air travel, etc. |
| 18% | Biscuits, cake, etc. | I.T services, A.C Hotels, Telecom services etc. |
| 28% | Chocolate, Luxury items like high-end cars etc. | Five-star hotel, cinema etc. |
Question 4.
The local self-government institutions also levy different types of taxes, just like the state and central governments. Search, find out and list them.
Answer:
Local self-government institutions like panchayats and municipal corporations levy the following types of taxes:
Property Tax: On residential and commercial properties.
Land and Building Tax: Levied in rural areas based on land value.
Profession Tax: Imposed on businesses and professionals.
Entertainment Tax: On movie screenings and public events.
Water Tax: For water supply services.
Vehicle Tax: On registered vehicles within the area.
Advertisement Tax: Imposed on public advertisements like billboards.
Class 7 Social Science Budget: The True Record of Development Notes Questions and Answers
Question 1.
Define the terms.
a. Expected expenditure
b. Unexpected expenditure
Answer:
a) 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
b) 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.
Question 2.
What is difference between family Expenditure and family income?
Answer:
- 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.
- 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 expenditures and improve the standard of life.
Question 3.
Classify the following items into expected and unexpected expenditure. Education, Interest rate hikes, Medical Expenses, Food, Device replacement, Accident
Answer:
| Expected Expenditure | Unexpected Expenditure |
| Education | Accident |
| Medical Expenses | Device replacement |
| Food | Interest rate hikes |
Question 4.
How can we reduce the expenditure of a family?
Answer:
- Use locally available resources for food.
- Cultivate your own food resources.
- Use public distribution system and fair price sale counters to the maximum extent possible.
- Limit Transportation Costs.
- Cut Unnecessary Spending.
Question 5.
Meenu saw that her father is planning their family budget for next month. Is there any benefit to this? State your opinion.
Answer:
- Adjusting the expenditure to match the income.
- Reduces Financial Stress.
- Teaches Financial Responsibility.
- Better Money Management.
Question 6.
What are the two major categories of public expenditure? Explain.
Answer:
The public expenditure can be classified into two categories: developmental expenditure and non- developmental expenditure. Expenditures directly related to the economic and social development of the country are called developmental expenditures. Non-development expenditure is the one incurred by the government on a regular basis for national interest and public services.
Question 7.
A list of items is given below. Categorise them into developmental and non-developmental expenditures.
roads, defence, interest, pension, bridges, epidemic and natural disasters, harbours
Answer:
Development expenditure: The expenditure spent for constructing roads, bridges, harbours
Non-developmental expenditure: Expenses involved in defence, interest, pension, epidemic, and natural disasters come under this.
Question 8.
What are the major divisions of public revenue?
Answer:
Tax revenue and non-tax revenue.
Question 9.
Differentiate between Direct tax and Indirect tax.
Answer:
Direct tax: 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.
Indirect tax: the tax levied on one individual is paid partially or completely by another. Sales tax and entertainment tax are examples of indirect tax.
Question 10.
Define tax.
Answer:
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.
Question 11.
Give examples of direct and indirect tax.
Answer:
| Direct Taxes | Indirect Tax |
| Income Tax | Goods and Services Tax (GST) |
| Corporate Tax | Value Added Tax (VAT) |
| Property Tax | Entertainment Tax |
| Gift Tax | Service Tax |
Question 12.
Fill in the blanks.
a) ……………is the amount spent by the government for developmental and non- developmental activities.
b) …..is the one incurred by the government on a regular basis for national interest and public services.
c) The person who remits taxes is called as…….
Answer:
a) Public expenditure
b) Non-development expenditure
c) Taxpayer
Question 13.
Define GST.
Answer:
Goods and Services Tax (GST) is a unified indirect tax that came into effect on July 1, 2017, after the 101st amendment of the Constitution, to implement the principle of a unified tax for the nation.
Question 14.
Define terms.
a) Budget
b) GST
c) Public debt
Answer:
a) The budget is a financial document of the expected income and expenditure by the government for a specific financial year.
b) 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.
c) The government has to take loans to materialise 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.
Question 15.
What are the objectives of Fiscal policy?
Answer:
- Accelerate the economic growth
- Create job opportunities
- Regulate additional expenditure
- Eliminate the inequality in the distribution of revenues
Question 16.
What is meant by Internal and external debt?
Answer:
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. The productive use of these loans helps in materialising welfare and developmental activities, thereby increasing revenue and reducing public debt.
Question 17.
Identify the terms.
a) More income, less expenditure
b) Equal income and expenditure
c) Less income, more expenditure
Answer:
a) Surplus Budget
b) Balanced Budget
c) Deficit Budget
Question 18.
Who is the first Finance minister of India?
Answer:
R. K. Shanmugham Chetty
Question 19.
Write down the tax rates under GST.
Answer:
At present, the consumer has to pay GST at the rates of 0%, 5%, 12%, 18% and 28%.
Question 20.
Fill in the blanks
a) In our country, the budget is prepared for one financial year starting from ……. to ………
b) The…………presents the budget.
c) The loans thus availed by the government are known as the……..
Answer:
a) April 1st to March 31st.
b) finance minister
c) public debt
Std 7 Social Science Budget: The True Record of Development Notes
- The total amount spent by a family for food consumption and non-food consumption for a particular period is called the family expenditure.
- All the expenditure of a family cannot be fixed in advance.
- Family Expenditure can be categorised into two: Expected Expenditure and Unexpected Expenditure.
- Expected expenditure is the expenditure that is expected in a family for particular period. This can be estimated as monthly and annually.
- The expenditure that a family cannot fix in advance for a particular period and which occurs accidentally is termed unexpected expenditure.
- 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.
- The family income becomes stable when the income is more than the expenditure or when the income and the expenditure are equal.
- 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.
- The public expenditure can be classified into two categories: developmental expenditure and non-developmental expenditure.
- 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.
- The government needs a huge amount of money for developmental and welfare activities. The government makes revenue from two major sources: Tax revenue and non-tax revenue. 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.
- 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 government has to take loans to materialise 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.
- Fiscal policy is a comprehensive government policy concerning the public revenue, public expenditure and public debt.
- Fiscal policy prepared by the finance department is implemented through the budget.