Question 1 : In our Constitution, the term ‘Budget’ is used under
a) Article 112
b) Article 72
c) Schedule 5
d) No where used
Answer : d
Question 2 : In India, Budget is prepared by
a) Department of Economic Affair
b) Depart of Revenue
c) Department of Baking and Finance
d) None of the above
Answer : a
Question 3 : The first Budget of the Independent India was presented by
a) Vallabhbhai Patel
b) Dr Bhabha
c) Baldev Sahai
d) RK Shanmukham Chetty
Answer : d
Question 4 : First outcome budget of India was prepared in the year
a) 2001
b) 2005
c) 2010
d) 2011
Answer : b
Question 5 : The concept of Zero Based Budget (ZBB) was given by
a) RA Musgrave
b) Peter A Pyhrr
c) Klador
d) VKRV Rao
Answer : b
Question 6 : In which country zero based budgeting was used for the first time?
a) USA
b) France
c) India
d) Germany
Answer : a
Question 7 : The concept of performance budget was taken from
a) Germany
b) France
c) UK
d) USA
Answer : d
Question 8 : The controlling authority of government expenditure is
a) RBI
b) Planning Commission
c) Finance Ministry
d) Finance Commission
Answer : c
Question 9 : The Finance Minister who announced long term fiscal policy for the country
a) VP Singh
b) P Chidambaram
c) Dr Manmohan Singh
d) Yashwant Singh
Answer : a
Question 10 : Which one of the following is the major component of budget of the financial year of the Union Government in India?
a) Actual figures for the preceding year
b) Budget and revised figures for the current year
c) Budget estimates for the following year
d) All of the above
Answer : d
Question 11 : Identify the correct sequence of passing a Budget in the Parliament
a) Vote on Account Finance Bill-Appropriation Bill-Discussion on Budget
b) Finance Bill-Appropriation Bill-Discussion on Budget-Vote on Account
c) Discussion on Budget-Vote on Account-Finance Bill-Appropriation Bill
d) Discussion on Budget-Appropriation Bill-Finance Bill-Vote on Account
Answer : d
Question 12 : Identify the correct sequence of passing a budget from the given options
I. Presentation of Budget
II. Security of Budget by Departmentally related Standing Committee
III. Passing of Finance Bill
IV. Passing of Appropriation Bill
a) I, II, IV, III
b) I, III, II, IV
c) II, I, III, IV
d) I, II, III, IV
Answer : a
Question 13 : As per the Budget estimates of 2019-20, the following are some of the important sources of tax receipts for the Union Government
I. Corporation Tax
II. Taxes on income other than Corporation Tax
III. Goods and Service Tax
IV. Union Excise Duties
Which of the following statements given above is/are correct?
a) I, II, III, IV
b) I, III, II, IV
c) III, II, I, IV
d) II, IV, III, I
Answer : b
Question 14 : Assertion (A) : Article 112 of the Indian Constitution describes Union Budget an Annual Finance Statement
Reason (R) : Morarji Desai has presented maximum budget
a) Both A and R are true and R is the correct explanation of A
b) Both A and R are true, but R is not the correct explanation of A
c) A is true, but R is false
d) A is false, but R is true
Answer : b
Question 15 : Assertion (A) : In India zero based budgeting method is being promoted
Reason (R) : In this method before allocating revenue all expenses for each new period must be justified
a) Both A and R are true and R is the correct explanation of A
b) Both A and R are true, but R is not the correct explanation of A
c) A is true, but R is false
d) A is false, but R is true
Answer : b
Question 16 : Who among the following overseas the Fiscal Policy in India?
a) Ministry of Finance
b) RBI
c) Parliament
d) Prime Minister
Answer : a
Question 17 : Government receipts are divided into
a) Revenue receipts
b) Capital receipts
c) Primary receipts
d) Both (a) and (b)
Answer : d
Question 18 : All government receipts which either create liability or reduce assets are treated as
a) Revenue receipts
b) Capital receipts
c) Primary receipts
d) None of the above
Answer : b
Question 19 : Which one of the following is not a component of Capital Receipts of the Union Government?
a) Public Provident Fund
b) Disinvestment receipts
c) Borrowing from World Bank
d) Corporate tax receipts
Answer : d
Question 20 : Which one of the following is not a component of Revenue Receipts of the Union Government?
a) Corporate tax receipts
b) Dividends and profits
c) Disinvestment receipts
d) Interest receipts
Answer : c
Question 21 : In India, tax revenue constitute an important segment of
a) Revenue receipts
b) Capital receipts
c) Borrowing
d) None of the above
Answer : a
Question 22 : Development expenditure of the Central Government does not include
a) defence expenditure
b) expenditure on economic services
c) expenditure on social and community services
d) grant to states
Answer : a
Question 23 : Expenditure for public administration falls under
a) plan expenditure
b) non-plan expenditure
c) profitable expenditure
d) None of the above
Answer : d
Question 24 : Effective Revenue Deficit was introduced in the Union Budget of
a) 2010-11
b) 2011-12
c) 2009-10
d) 2012-13
Answer : d
Question 25 : Interest payment is an item of
a) Revenue expenditure
b) Capital expenditure
c) Plan expenditure
d) None of the above
Answer : a
Question 26 : Consider the following statements regarding difference between Revenue and Capital Expenditure
I. Revenue expenditure refers to the expenditure which neither creates assets nor reduces the liability of the government, whereas capital expenditure refers to the expenditure which either creates an asset or reduces the liability of the government
II. Revenue expenditure are regular and recurring in nature, while capital expenditure are non regular and non-recurring in nature
III. Both constitute important part of government fiscal policy?
Which of the following statements given above is/are correct?
a) I and II
b) II and III
c) I and III
d) All of these
Answer : d
Question 27 : Consider the following expenditures
I. Salary paid to government employee
II. Interest paid on national debt
III. Loan given to State government
IV. Construction of tunnel
Which of the following statements given above is/are correct?
a) I and II
b) II and III
c) I and III
d) All of these
Answer : a
Question 28 : Which of the following constitute Capital Account?
I. Foreign loans
II. Foreign Direct Investment
III. Private Remittances
IV. Portfolio Investment
a) I, II and III
b) I, II and IV
c) II, III and IV
d) I, III and IV
Answer : b
Question 29 : Fiscal Deficit is
a) Revenue Receipts + Capital Receipts (only recoveries of loans and other receipts) – Total Expenditure
b) Budget Deficit + Government’s market borrowings and liabilities
c) Primary Deficit + Interest Payments
d) All of the above
Answer : a
Question 30 : If interest payments is taken out of fiscal deficit, then remaining amount will be
a) primary deficit
b) revenue deficit
c) budgetary deficit
d) capital deficit
Answer : a
Question 31 : Ad hoc Treasury Bill System of meeting budget deficit in India was abolished on
a) 1st April, 1992
b) 1st April, 1994
c) 31st March, 1996
d) 31st March, 1997
Answer : d
Question 32 : Fiscal deficit in the Union Budget means
a) the difference between current expenditure and current revenue
b) the net increase in Union Government’s borrowings from the Reserve Bank of India
c) the sum of budgetary deficit and net increase in internal and external borrowing
d) the sum of monetised deficit and budgetary deficit
Answer : c
Question 33 : The objective of the Fiscal Responsibility and Budget Management Act, 2004 is
a) to reduce revenue deficit
b) to reduce fiscal deficit
c) to ensure that public debt does not exceed 50% of the GDP of the year from 2011
d) All of the above
Answer : d
Question 34 : Which of the following statements is/are correct?
Fiscal Responsibility and Budget Management Act (FRBM) concerns
a) Fiscal deficit
b) Revenue deficit
c) Both (a) and (b)
d) None of the above
Answer : c
Question 35 : Which one of the following was not stipulated in the Fiscal Responsibility and Budget Management Act, 2003?
a) Elimination of revenue deficit by the end of the fiscal year 2007-08
b) Non-borrowing of the Central Government from Reserve Bank of India except under certain circumstances
c) Elimination of primary deficit by the end of the fiscal year 2008-09
d) Fixing government guarantees in any financial year as a percentage of GDP
Answer : c
Question 36 : In India, deficit financing is used for raising resources for
a) economic development
b) redemption of public debt
c) adjusting the Balance of Payments
d) reducing the foreign debt
Answer : a
Question 37 : Along with the Budget, the Finance Minister also places other documents before the Parliament which includes ‘The Macro Economic Frame Work Statement’. The aforesaid document is presented because this is mandated by
a) Long standing Parliament convention
b) Article 112 and Article 110(1) of the Constitution of India
c) Article 113 of the Constitution of India
d) Provisions of the Fiscal Responsibility and Budget Management Act, 2003
Answer : d
Question 38 : In the context of governance, consider the following
I. Encouraging foreign and direct investment inflows
II. Privatisation of higher educational institutions
III. Down-sizing of bureaucracy
IV. Selling/offloading the shares of public sector undertakings
Which of the above can be used as measures to control the fiscal deficit in India?
a) I, II and III
b) II, III and IV
c) I, II and IV
d) II and III
Answer : d
Question 39 : There has been a persistent deficit budget year after year, which of the following actions can be taken by the government to reduce the deficit?
I. Reducing revenue expenditure
II. Introducing new welfare schemes
III. Rationalising subsidies
IV. Expanding industries
a) Only I
b) II and III
c) I and III
d) I, II, III and IV
Answer : c
Question 40 : Which among the following is/are true?
I. Deficit financing does not lead to inflation if adopted in small doses
II. Deficit financing is an often used tool for financing budgetary deficits
a) Only I
b) Only II
c) Both I and II
d) None of the above
Answer : c
Question 41 : Assertion (A) : India has long history of fiscal deficit
Reason (R) : In comparison to the Western countries government support to agriculture is more in India
a) Both A and R are true and R is the correct explanation of A
b) Both A and R are true, but R is not the correct explanation of A
c) A is true, but R is false
d) A is false, but R is true
Answer : d
Question 42 : Assertion (A) : Revenue deficit is always bigger than budgetary deficit
Reason (R) : Fiscal deficit is borrowing from RBI and other liabilities of the government to meet its expenditure
a) Both A and R are true and R is the correct explanation of A
b) Both A and R are true, but R is not the correct explanation of A
c) A is true, but R is false
d) A is false, but R is true
Answer : a
Question 43 : Question Not Available
a)
b)
c)
d)
Answer :
Question 44 : In India taxes can be levied by
a) Central government
b) State government
c) Local bodies
d) All of the above
Answer : d
Question 45 : The principal source of revenue for the government is
a) tax
b) non-tax
c) earning from abroad
d) interest
Answer : a
Question 46 : The difference between GDP at market prices and GDP at factor cost is
a) Direct Taxes
b) Indirect Taxes
c) Transfer Payments
d) Subsidies
Answer : b
Question 47 : Taxes raised are credited into
a) Consolidated Fund
b) Contingency Fund
c) Public Account
d) Private Account
Answer : a
Question 48 : Which committee recommended abolition of tax rebates under Section 88?
a) Chelliah Committee
b) Kelkar Committee
c) Shome Committee
d) None of the above
Answer : b
Question 49 : Which of the following statements are correct?
I. Ability to pay principle of taxation holds that the amount of taxes people pay should relate to their income or wealth
II. The benefit principle of taxation states that individuals should be taxed in proportion to the benefit they receive from government programmes
III. A progressive tax takes a larger share of tax from poor families than it does from rich families
IV. Indirect taxes have the advantage of being cheaper and easier to collect
a) I and III
b) II and IV
c) I, II and IV
d) I, II, III and IV
Answer : c
Question 50 : Consider the following statements
I. Tax revenue as a per cent of GDP of India has steadily increased in the last decade
II. Fiscal deficit as a per cent of GDP of India has steadily increased in the last decade
Which of the following statements given above is/are correct?
a) Only I
b) Only II
c) Both I and II
d) Neither I nor II
Answer : d
Explore More MCQs Below
Ancient History
- Historical Sources and Pre-Historic Period
- Indus Valley Civilisation
- The Vedic Era and Mahajanapadas
- Religious Movements of 6th Century BCE
- Mauryan and Post-Mauryan Period
- The Gupta and the Post-Gupta Period
- Early Medieval Period (800-1200 CE)
- Sangam Period
Medieval History
- Arab and Turkish Invasion
- Delhi Sultanate
- Vijaynagara and Bahamani Kingdoms
- Emergence of Provincial Kingdoms (North and South India)
- Religious Movements of 15th and 16th Century CE
- Mughal Empire
- Post-Mughal Period (1707-1857)|
Modern History
- Rise of New States
- Advent of European Companies in India
- British Policies and Its Economic Impact in India
- Peasants, Tribal and Trade Union Movements
- Socio-Religious and Cultural Reforms
- Development of Press and Education System in Modern India
- Revolt of 1857
- Indian National Movement Phase-I (1885-1905)
- Indian National Movement Phase-II (1905-1919)
- Indian National Movement Phase-III (1919-1947)
- Communalism and Leftist Politics
- The British Governor Generals and Viceroys
Geography
World Geography
- Universe and Solar System
- Earth
- Geomorphology
- Climatology
- Oceanography
- Biogeography
- Agriculture Geography
- Minerals and Energy Resources
- Industry and Transport
- Social and Cultural Geography
- Continent and Countries
Indian Geography
- General Introduction of India
- Geological Structure of India
- Physical Division of India
- Drainage System of India
- Climate of India
- Natural Vegetation and Wildlife
- Soils of India
- Agriculture, Irrigation and Animal Husbandry in India
- Minerals and Energy Resources of India
- Industries and Research Centres in India
- Transportation and Communication
- Human Resources
- States and Union Territories of India
Environment and Ecology
- Environment and Ecology
- Pollution
- Climate Change
- Biodiversity
- Environmental Planning and Management
- Sustainable Development and Natural Disaster
Indian Polity
- Constitutional Development
- Framing of Indian Constitution
- The Preamble
- Citizenship and Union and Its Territory
- Fundamental Rights
- Directive Principles of State Policy
- Fundamental Duties
- Union Executive
- The Union Legislature
- Judiciary
- State Administration
- Centre-State Relationship
- Local Self Government
- Electoral System and Party System
- Constitutional and Non-Constitutional Bodies
- Emergency Provisions
- Official Language
- Constitutional Amendment and Special Provision for States
Indian Economy
- Basic Concepts and Structure of Indian Economy
- National Income and Economic Development
- Economic Planning
- Poverty, Unemployment and Related Schemes
- Indian Agriculture
- Indian Industries and Industrial Policy
- Money and Banking
- Financial Market
- Public Finance
- Balance of Payment and Foreign Investments
- International Financial Institutions