Indian Economy Questions

Deficit financing implies public expenditure in excess of public revenue.

• The Department of Economic Affairs, Finance Ministry of India presents the Economic Survey in the parliament every year, just before the Union Budget.

• It is prepared under the guidance of the Chief Economic Adviser, Finance Ministry.

• It is the ministry's view on the annual economic development of the country.

Capitalism is an economic system in which private individuals or businesses own capital goods i.e, economy is characterized by private ownership of the means of production. The production of goods and services is based on supply and demand in the general market known as a market economy and not on central planning known as a planned economy.

Revenue should be recognized when it is realized or when it is earned. When a service is performed something is earned and revenue should be recognized.