Division of Powers:
In our Constitution, there is a clear division of powers so that none violates its limits and tries to encroach upon the functions of the other and functions within own sphere of responsibilities.
i. There are three lists enumerated in the Seventh Schedule of constitution. They are: the Union list, the State list and the Concurrent List.
ii. TheUnion List consists of 100 subjects of national importance such as Defence, Railways, Post and Telegraph, etc.
iii. The State List consists of 61 subjects of local interest such as Public Health, Police etc.
iv. The Concurrent List has 52 subjects important to both the Union and the State, such as Electricity, Trade Union, Economic and Social Planning, etc.

(i) Revenue and capital budget
(ii) Supplementary budget
(iii) Zero base budget
(iv) Performance budget
(v) Balance and Unbalanced budget
(vi) Unbalanced budget
(a) Deficit budget
(b) Surplus budget

(i) Sales tax was a multi point tax with cascading effect.
(ii) VAT was multi point tax without cascading effect.
(iii) GST is one point tax without cascading effect.

(i) When a loan is taken from abroad or from an international organisation it is called external public debt.
(ii) The main sources of external public debt are IMP, World Bank, IDA and ADB etc.
(iii) Loan from other countries and the governments.

The Government of India has been providing subsidies on a number of items such as food, fertilizers, interest on priority sector lending, exports, education, etc. Because of the massive amounts of subsidies, the public expenditure has increased manifold