State with reasons whether you agree or disagree with the following statement
1. Obligatory function is the only function of the Government.
Ans: NO, I Disagree with the above statement.
Reason:-
There are two functions of the government.
a. Obligatory functions
b. Optional functions
2 . The goods and services tax (GST) has replaced almost all indirect taxes in India.
Ans: Yes, I Agree with the above statement.
Reason:-
a. Newly implemented Goods and Services Tax [GST] in India has replaced almost all indirect taxes, customs duty.
b. The Goods and Services Tax [GST] came into effect in India on July 1, 2017.
3. Democratic Governments do not lead to increase in public expenditure.
Ans: NO, I Disagree with the above statement.
Reason:-
a. The majority of the countries in the world are democratic in nature.
b. A democratic form of government is expensive due to regular elections and other such activities.
4. Public finance is more elastic than private finance.
Ans : Yes, I Agree with the above statement.
Reason:-
There is not much scope for changes in private finance therefore public finance is more elastic.