Tag: government budget and taxation

Questions Related to government budget and taxation

Which among the following is a component of revenue expenditure of the government?

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

  1. Expenditure on general services

  2. Expenditure on economic services

  3. Grants

  4. All of the above

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Correct Option: D
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. These expenditure includes expenditure on general services, economic services and grants provided to states or member countries. 

Which type of expenditure is incurred by the government for the economic and social development 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. Non-development expenditure

  2. Non-plan expenditure

  3. Development expenditure

  4. Revenue expenditure

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Correct Option: C
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.

Capital expenditure is majorly of developmental nature.

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

  1. True

  2. False

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Correct Option: A
Explanation:

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. Therefore, these expenditure are usually development as it contributes to the social and economic welfare of the country. 

Grants, a part of the revenue expenditure of the government, refers to all the grants given by the state government to the central government.

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

  1. True

  2. False

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Correct Option: B
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. Therefore, grants as a part of revenue expenditure is a unilateral payment or transfer payment from central government to the state government in case of uncertainties.

Which of the following is/ are included in the capital budget of the Government of India?
1. Expenditure on acquisition of assets like roads, buildings, machinery, etc.
2. Loans received from foreign governments
3. Loans and advances granted to the States and Union Territories
Select the correct answer using the code given below.

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

  1. $1$ only

  2. $2$ and $3$ only

  3. $1$ and $3$ only

  4. $1, 2$ and $3$

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Correct Option: D

Trade liberalization and a shift to market determined exchange rate regime had _______ impact on BOP.

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

  1. positive

  2. negative

  3. unfavourable

  4. no

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Correct Option: A

The improvement in current account deficit in 2000-01 was due to ______.

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

  1. dynamism in export performance

  2. sustained buoyancy in invisible receipts

  3. subdued non-oil import demand

  4. all of above

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Correct Option: D

The BOP position remained ________ in 1995-96, 96-97 and 1997-98.

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

  1. unfavourable

  2. adverse

  3. uncomfortable

  4. comfortable

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Correct Option: D

Identify the non-tax revenue from the following statement: "It refers to claim of the government on the property of a person who dies without leaving behind any legal heir or a will".

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. Special Assessment

  2. Escheats

  3. Forfeitures

  4. Fees

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Correct Option: B

Under which of the following tax system, more tax is imposed on the lower income group?

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. Regressive

  2. Progressive

  3. Value Added Tax

  4. Proportional Tax

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Correct Option: A