Economics · General Awareness

Fiscal Policy and Government Budget

1,089 Questions

Fiscal policy and government budget questions evaluate your knowledge of economic stabilization, public expenditure, and deficit management. These topics are crucial for civil services and banking examinations. Practice these questions to master macroeconomic principles.

Budget deficitsFiscal policy toolsGovernment expenditureExpansionary fiscal policyPublic debt benefits

Fiscal Policy and Government Budget Questions

Multiple choice civics introduction to gst fundamentals of gst tax journal

A collection of SGST is the revenue of the State Government.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under GST, SGST is a tax levied on Intra State supplies of both goods and services by the State Government and will be governed by the SGST Act. 

Hence, the above statement is true.

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

The _______________ of the budget starts once the Finance and Appropriation Bills are passed.

  1. preparation

  2. enactment

  3. execution

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Once the budget is enacted into law, the government proceeds to the execution phase, where the funds are spent according to the approved budget.

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

Budget of the Delhi government is an example of _____________ budget.

  1. union

  2. state

  3. district

  4. national
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
State budget is the government budget which is prepared for a given financial year for a single state. The budget prepared by the state government is a state budget. Therefore, the budget of Delhi government is an example of state budget.
Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

The revenue budget consists of capital receipts and capital expenditure.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

False.

Revenue shows all types of current receipts of the government and related expenditures. Revenue budget includes 'revenue receipts' and 'revenue expenditure'. 
Revenue receipts refers to all such types of money receipts that do not create any liability for the government or does not reduce any asset of the government. 

Revenue expenditure are all such types of government expenditure that does not create any assets for the government or does not cause any reduction in the liability of the government. 

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

The types of budget of the government are ______________.

  1. Union budget

  2. Plan budget

  3. Revenue budget

  4. Both A and B
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The type of budget of the government are: 

Union budget - The government budget which is prepared for a given financial year for the whole country is known as union budget. 
Plan Budget - The government budget which is prepared for a upcoming financial year with estimated receipts and expenditure is known as plan budget. 

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

The revenue budget consists of revenue receipts and revenue expenditure.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

True. 

Revenue shows all types of current receipts of the government and related expenditures. Revenue budget includes 'revenue receipts' and 'revenue expenditure'. 
Revenue receipts refers to all such types of money receipts that do not create any liability for the government or does not reduce any asset of the government. 

Revenue expenditure are all such types of government expenditure that does not create any assets for the government or does not cause any reduction in the liability of the government. 

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

________________ is an annual financial statement of the government.

  1. Report

  2. Budget

  3. Cash flow statement

  4. Funds flow statement
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Budget is an annual financial statement of the government. It is a statement of the estimates of the government receipts and government expenditure during the period of the financial year. It unveils the fiscal policy of the government, focusing on growth and stability of the economy.  

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

The components of the budget are _______________ and __________________ budget.

  1. revenue and capital

  2. surplus and balanced

  3. tax and non tax

  4. none of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Budget is a statement of the estimates of the government receipts and government expenditure during the period of the financial year. There are two main component of a budget: 

1. Receipts - It refers to the estimated money receipts of the government from all sources during the fiscal year.

2. Expenditure- It refers to the estimated expenditure of the government related to its developmental and non developmental programs during the fiscal year.

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

_________________ budget is the budget prepared by the central government for the country as a whole.

  1. State

  2. Union

  3. Revenue

  4. Capital
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
Union budget is the government budget that is prepared for a given financial year for the whole country. The union government prepares the union budget. 
Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

Constraints on which budget line is made are __________.

  1. given income and prices

  2. given prices and tastes

  3. given income and tastes

  4. given prices and government policy
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A budget line is defined by the constraint of the consumer's total money income and the market prices of the two goods being considered.

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

The budget in which its tax revenue and expenditure are equal is called ____________.

  1. surplus budget

  2. balanced budget

  3. unbalanced budget

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Balanced budget refers to a situation where the budget expenditure of the government on tax is equal to the budget revenue of the government from tax paid by the public.

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

Excess of total expenditure over total receipts is known as __________.

  1. budgetary deficit

  2. revenue deficit

  3. fiscal deficit

  4. none of the above.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Budgetary deficit also known as government deficit refers to a situation when the budget expenditure of the government are greater than the budget revenue of the government due to which the expenses exceed the revenue. 

Multiple choice civics public health and the government role of the government in health food security and related aspects food security

The government plan its expenditure making a clear statement on the amount of money it is going to spend on public facilities. This statement is called what?

  1. Statement of expenditure

  2. Government budget

  3. Draft

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A government budget is the annual financial statement that outlines the government's estimated receipts and expenditures for the upcoming fiscal year.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Some of the economic policies of Government are?

  1. Industrial policy

  2. Fiscal policy

  3. Tariff policy

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Economic policies of Government are formed for maintaining the stability of the economy. They are also formed to ensure economic development. Some of the economic policies of Government are:

1) Industrial policy which is required to control the function of industries in a country.

2) Fiscal policy is formed to maintain the money flow in the economy.

3) Tariff Policy is formed to check the tax and tariff obtained from the trade in the economy.