Tag: main feature of tax

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

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

  1. budget deficit

  2. effective revenue deficit

  3. primary deficit

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

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

Public finance means ______.

  1. people's money

  2. government's finance

  3. personal finance

  4. government and people's money
Reveal answer Fill a bubble to check yourself
B Correct answer
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.

Multiple choice social science the government budget and taxation public debt public debt main feature of tax

Which of the following is not a union tax?

  1. Stamp duties on financial documents

  2. Taxes on railway freights and fares

  3. A and b only

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

Tax is levied by government on their citizens to generate income for undertaking projects to boost the economy of the country and to raise the standard of living of its citizens. Union tax is a tax paid to central government. Stamp duties on financial documents, Taxes on railway freights and fares are not the examples of Union tax.

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

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 _____.

  1. budget deficit

  2. revenue deficit

  3. fiscal deficit

  4. primary deficit
Reveal answer Fill a bubble to check yourself
C Correct answer
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.

Multiple choice social science the government budget and taxation public debt public debt main feature of tax

Fiscal policy is concerned with which of the following?

  1. Export and import

  2. Public revenue and expenditure

  3. Issue of currency

  4. Population control
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Fiscal policy refers to the use by the government of the various instruments such as taxation, expenditure and borrowing to achieve the objectives of balanced economic development, full employment, etc. The budget or the annual financial statement of the government, gives expression to its fiscal policy.
In accordance with Article-112 of the Indian Constitution, the President shall cause to be laid a financial statement before both the houses of parliament at the commencement of every financial year of the estimated receipts and expenditure of the Government of India for that year.