Page 89 - VIRANSH COACHING CLASSES

Q. 3. State with reasons whether you agree or population was numerals enough and earning enough
disagree with the following statement : to generate the taxes to pay for the care of those
1) Obligatory function is the only function of the not working. This model is ill-suited for less, well-
Govenment. off India with growing life expectancy, increasing

2) Fines and penalties are a major source of urbanization and resultant migration. Social security
revenue for the Government. under urbanization will be different from social
3) The goods and services tax (GST) has replaced security in a static society.
almost all indirect taxes in India. 1) State the conventional notion of social security.
4) Democratic Governments do not lead to 2) What kind of conceptual change is suggested in
increase in public expenditure. the given paragraph.
5) Public finance is more elastic than private 3) What is a legacy of social security from the rich
finance. world?
4) Which features of India make the traditional
Q. 4. Read the given passage and answer the
questions : model of social security ill-suited for the
“The conventional notion of social security is economy?
that the government would make periodic payments Q. 5. Answer the following :
to look after people in their old age, ill-health, 1) State the types and importance of Government
disability and poverty. This idea should itself budget.
change from writing a cheque for the beneficiary to
2) Explain the principles of taxation.
institutional arrangements to care for beneficiaries, 3) Explain non-tax sources of revenue of the
including by enabling them to look after themselves, Government.
to a large extent.
The write-a-cheque model of social security is Q. 6. Answer in detail :
a legacy from the rich world at the optimal phase 1) Explain various reasons for the growth of public
of its demographic transition, when the working expenditure.

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