Tag: government budget and economy

Quizzes (6) Questions (228)

Questions Related to government budget and economy

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

Pick out the item which is not a part of the plan expenditure.

  1. Agriculture

  2. Industry

  3. Social Services

  4. Defence
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Plan expenditure is essentially the budget support to the Central Plan and the Central assistance to State and Union Territory plans. Like all budget heads, this is also split into revenue and capital components. Defense is not part of plan expenditure.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

Capital expenditure is categorised as ________.

  1. planned

  2. unplanned

  3. both A and B

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

Any expenditure that is incurred on programmes which are detailed to state for their plans is called planned expenditure. The estimated expenditure provided in the budget for spending during the year on routine functioning of the government is unplanned expenditure. So capital expenditure comprises both.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

The difference between total expenditure and total receipts is ______.

  1. fiscal deficit

  2. budget deficit

  3. primary deficit

  4. revenue deficit
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The budget deficit is the difference between current government's spending on goods and services and total current revenue from all types of taxes net of transfer payments.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

Capital account of the government consists of _______.

  1. capital receipts

  2. capital expenditure

  3. both A and B

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

The capital account of the government budget comprises capital receipts, such as loans and disinvestment proceeds, and capital expenditure, which includes spending on assets like infrastructure and machinery.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

Gross fiscal deficit is calculated by subtracting which of the following from total expenditure ________.

  1. revenue receipts

  2. non-debt capital receipts

  3. both A and B

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

Gross Fiscal Deficit is defined as Total Expenditure minus (Revenue Receipts + Non-debt Capital Receipts). This calculation isolates the portion of expenditure that must be financed through borrowing.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

Which of the following is/are the adverse effects of deficit financing ______.

  1. reduction in prices

  2. inflation

  3. inequality

  4. both B and C
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Deficit financing, when excessive, increases the money supply, which leads to inflation. It can also exacerbate economic inequality by disproportionately affecting those with fixed incomes while benefiting asset holders.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

The full form of FRBM Act 2003 is _______.

  1. Fiscal Regulation and Budget Management Act

  2. Fiscal Regulation and Banking Management Act

  3. Fiscal Responsibility and Budget Management Act

  4. Financial Responsibility and Budget Management Act
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Fiscal Responsibility and Budget Management Act, 2003 (FRBMA) is an Act of the Parliament of India to institutionalize financial discipline, reduce India's fiscal deficit, improve macroeconomic management and the overall management of the public funds by moving towards a balanced budget.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

The term fiscal federalism was introduced by _______.

  1. Dalton

  2. Seligman

  3. Musgrave

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

Fiscal federalism, financial relations between units of governments in a federal government system. Fiscal federalism is part of broader public finance discipline. The term was introduced by the German-born American economist Richard Musgrave in 1959.