Tag: government budget and taxation

Quizzes (5) Questions (179)

Questions Related to government budget and taxation

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

Budget expenditure refers to the estimated expenditure of the government during a given fiscal year.

  1. True

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

Budget expenditure refers to the overall expenditure done by the government in the economy during a given period of financial year. It has two components 

1. 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. 
2. Capital expenditure - Capital expenditure are all those expenditure of the government that either creates an asset for the government or reduce the liability of the government. For example - Expenditure on land and building, purchase of shares etc.

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

Which of the following is a component of the capital receipts of the government?

  1. Borrowings

  2. Disinvestment

  3. Recovery of loans

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Capital receipts are all those money receipts of the government that either creates a liability for the government or reduce an asset of the government. Therefore, capital receipts includes borrowings, disinvestment and recovery of loans. 

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

Taxes levied on personal income, profits of the corporate, wealth and property is termed as ________ tax.

  1. indirect

  2. service tax

  3. direct

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

Direct tax are the tax where the final burden of the tax is borne by the person on whom it is imposed. These taxes are directly paid by the person on whom it is imposed to the government. For example- income tax, corporate tax etc. 

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

Which among the following is a source of non-tax revenue for the government?

  1. Gifts and grants

  2. Fees, fines and penalties

  3. Interest and dividend on investments

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Non-tax receipts of the government are all those revenue receipts of the government that is not a part of tax receipts of the government be it a direct tax or indirect tax. For example - fees, fines, escheats, gifts and grants, interest and dividends on investment, etc. 

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

____________ refers to all those revenue receipts of the government which are not a part of the tax receipts.

  1. Taxable revenue

  2. Non-tax revenue

  3. Revenue from disinvestment

  4. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Non tax receipts of the government are all those revenue receipts of the government that is not a part of tax receipts of the government be it is direct tax or indirect tax. For example - fees, fines, escheats, etc. 

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

__________ receipts are those monetary receipts which either creates a liability or leads to a reduction in the assets of the government.

  1. Revenue

  2. Capital

  3. Tax

  4. Non-tax
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Capital receipts are all those money receipts of the government that either creates a liability for the government or reduce an asset of the government. Therefore, capital receipts include small savings, market loans and provident funds.

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

The expenditure incurred by the government which is out of the scope of government plans due to calamities is termed as __________.

  1. plan expenditure

  2. capital expenditure

  3. non-plan expenditure

  4. non-development expenditure
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Non planned expenditure are those government expenditure that are incurred on the non planned projects of the government. All the expenditure incurred by the government on projects after five years of plans are considered as non planned expenditure. 

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

Expenditure incurred by the government for the provision of essential services like judiciary, defence, and administration is termed as ____________.

  1. plan expenditure

  2. non-development expenditure

  3. non-plan expenditure

  4. development expenditure
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
The government expenditures incurred on activities that are directly related to or results in some economic and social development of the country such as infrastructural improvement are called developmental expenditures.
Multiple choice business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

_________ expenditure refers to the expenditure incurred by the government on various programmes in the plan.

  1. Plan

  2. Non-plan

  3. Development

  4. Non-development
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Plan expenditure refers to the expenditure that the government spends upon the planned programs. These plans usually have a five years duration and any expenditure above this period is not considered as planned expenditure. 

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

____________ expenditure is incurred for the smooth functioning of the government departments and its various services.

  1. Capital

  2. Development

  3. Revenue

  4. Plan
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

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. These expenditures are mainly conducted to provide smooth functioning of government activities and related services.