(i) With suitable examples Distinguish between Direct tax and Indirect tax. (ii) Responding to the Prime Minister's 'Give it up campaign' a large number of Indian families have voluntarily surrendered their cooking gas subsidy. Identify and explain the objective behind this action taken by the Government of India. (i) Distinguish between Revenue Receipts and Capital Receipts of the government, with suitable example. (ii) "Under 'Zero Defect, Zero Effect' (ZED) scheme, the Government of India provides up to 80% subsidy to Micro, Small and Medium Enterprises (MSMEs)." Identify and explain the objective of government budget, highlighted in the above text.

Question

Accepted Answer

(i) Direct tax vs Indirect tax:

Direct Tax:
- Paid directly by taxpayer
- Cannot be shifted
- Example: Income tax

Indirect Tax:
- Paid by one, burden shifted
- Example: GST

(ii) Give it up campaign:
1. Voluntary surrender of LPG subsidy
2. Rich people give up subsidies
3. Saves government expenditure
4. Benefits poor families
5. Promotes social responsibility

The campaign demonstrates how voluntary actions can complement government budgetary measures for social welfare.