Tag: government budget and economy

Questions Related to government budget and economy

The word budget is derived from the ___________ word 'bougette'.

business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

  1. Latin

  2. German

  3. French

  4. none of the above

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Correct Option: C
Explanation:

The word budget is derived from a french word 'bougette' which means 'little bag' from where the budget concept was derived and after years of development the budget for every single country was started getting prepared. 

Budget is a/an _____________ statement of expenditure and revenue of the government prepared by the financial authority of the country.

business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

  1. annual

  2. semi-annual

  3. quarterly

  4. monthly

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Correct Option: A
Explanation:
Budget is an annual 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. Budget is usually prepared annually keeping in mind the financial year. 

____________ of the Constitution of India, requires the central government to prepare the 'Annual Financial Statement' of the country.

business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

  1. Article 172

  2. Article 116

  3. Article 112

  4. None of the above

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Correct Option: C
Explanation:

According to Article 112 of the Constitution of India, the central government has to prepare the annual financial statement of the country following the standard format and mentioning the required details adhering to the budget of the country. 

Which of the following are the constituents of the budget in India?

business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

  1. Annual statement of accounts for the current year.

  2. Annual statement of accounts for the preceding year.

  3. Estimates of revenue and expenditure for the current year.

  4. All of the above

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Correct Option: D
Explanation:
Budget is an annual 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. In India, budget is prepared for three consecutive years: preceding year, current year and estimated budget of the upcoming year. 

Budget period is the __________.

business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

  1. Period of budget committee

  2. Period of budget centers

  3. Period for which a budget is prepared

  4. Period of budget officer

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Correct Option: C

The ultimate responsibility of framing and executing economic policies is that of ________.

business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

  1. govt

  2. RBI

  3. state govt

  4. none of above

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Correct Option: A
Explanation:

Economic policies refers to those policies which are required for efficient functioning of an economy in proper law and order. These policies are framed and implemented by the government of the country in order to run the economy effectively. Therefore, the ultimate responsibility of framing and executing economic policies is that of the government of the country. 

Which of the following records the actual dollar expenditures, revenues, and deficits in a given period?

economics government budget and economy public debt public debt main feature of tax

  1. Structural budget

  2. Cyclical budget

  3. Actual budget

  4. None of the above

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Correct Option: C
Explanation:

Actual budget records the actual dollar expenditures, revenues, and deficits in a given period.

The difference between revenue deficit and grants for creation of capital assets is called _____.

economics government budget and economy public debt public debt main feature of tax

  1. budget deficit

  2. effective revenue deficit

  3. primary deficit

  4. fiscal deficit

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Correct Option: B
Explanation:

Effective Revenue Deficit is the difference between revenue deficit and grants for the creation of capital assets. In other words, the Effective Revenue Deficit excludes those revenue expenditures which were done in the form of grants for the creation of capital assets.
It was introduced in the Budget for the first time in 2011-2012

Public finance means ______.

economics government budget and economy public debt public debt main feature of tax

  1. people's money

  2. government's finance

  3. personal finance

  4. government and people's money

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Correct Option: B
Explanation:

Public finance is the branch of economics which assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones.

If in a budget the government's revenue receipts and non-debt capital revenue are less than the government's total expenditure, it is called _____.

economics government budget and economy public debt public debt main feature of tax

  1. budget deficit

  2. revenue deficit

  3. fiscal deficit

  4. primary deficit

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Correct Option: C
Explanation:

A fiscal deficit occurs when a government's total expenditures exceed the revenue that it generates, excluding money from borrowings. Deficit differs from debt, which is an accumulation of yearly deficits.