Tag: public finance and budget

Quizzes (7) Questions (140)

Questions Related to public finance and budget

Multiple choice economics public finance and budget black money and tax evasion meaning of tax direct taxes

Which of the following public revenue is a major contributor to the total central revenue?

  1. Tax revenue

  2. Non-tax revenue

  3. Both A and B have equal contribution

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

Public revenue which is a major contributor to the total central revenue is tax revenue. Revenue earned by government by taxing people is called tax-revenue. It is of two types:

  • Direct tax: tax payed to the government directly. Examples include income tax, gift tax, wealth tax, property tax etc.
  • Indirect tax: this tax is collected by an intermediary person from the person who ultimately bears the burden. Examples are sales tax, value added tax (VAT), goods and services tax (GST) etc. 

Multiple choice economics public finance and budget black money and tax evasion meaning of tax direct taxes

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

A status in which government’s expenditure exceeds more than its revenue is called budget deficit. The term budget deficit is most commonly used to refer to government spending rather than business or individual spending, but can be applied to all of these entities. 

Multiple choice economics public finance and budget black money and tax evasion meaning of tax direct taxes

The term money held by public excludes money held by ________.

  1. RBI

  2. Commercial banks

  3. Central Government

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

Money held by the public is a measure of money supply in an economy. It excludes money held by the central bank (RBI), commercial banks, and the government, as these are considered money creators or issuers rather than the public.

Multiple choice economics public finance and budget black money and tax evasion meaning of tax direct taxes

_______ is a compulsory contribution from a person to the expenses incurred by the State in common interest of all without reference to specific benefits conferred on any individual. 

  1. Tax

  2. Fees

  3. Rates

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

A tax is defined as a compulsory financial charge or levy imposed by a government on an individual or entity to fund public expenditures, without a direct quid pro quo or specific benefit provided to the payer.

Multiple choice economics public finance and budget black money and tax evasion meaning of tax direct taxes

Which committee recommended simplification and rationalization of tax system in India?

  1. Chelliah

  2. Boothalingam

  3. Both (a) & (b)

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

Both the Chelliah Committee (1991) and the Boothalingam Committee (1968) were significant in recommending reforms for the simplification and rationalization of the Indian tax system.