Tag: public finance, budget and fiscal policy

Questions Related to public finance, budget and fiscal policy

What are the features of Fiscal Responsibility and Budget Management Act, (FRBMA) 2003? 

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. To reduce fiscal deficit to not more than 3 percent of GDP

  2. To ensure greater transparency in fiscal operations.

  3. To eliminate the revenue deficit by March 31, 2009

  4. All the above

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Correct Option: D
Explanation:

The FRBMA is an act which institutionalizes and regulates financial discipline and help manage public funds in order to strengthen India's fiscal position. The purpose of FRBMA was to reduce fiscal deficit. 

Borrowing from all the sides like net borrowing from RBI and from abroad gives _______.

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. fiscal deficit

  2. budget deficit

  3. primary deficit

  4. revenue deficit

Show answer
Correct Option: B
Explanation:

The budget deficit is the difference between current government's spending on goods and services and total current revenue from all types of taxes net of transfer payments. So when borrowing is done from RBI or other sources, that creates the budget deficit.

The difference between total expenditure and total receipts except loans and other liabilities is called _______.

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. fiscal deficit

  2. budget deficit

  3. primary deficit

  4. revenue deficit

Show answer
Correct Option: A
Explanation:

The fiscal deficit is the primary deficit plus interest payments on the debt. Therefore, if refers to the difference in total expenditure and total receipts without loan and other liability.

The government manages the public finance through __________.

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. fiscal policy

  2. budget policy

  3. revenue policy

  4. primary policy

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Correct Option: A
Explanation:

By means of fiscal policy, government adjusts its spending levels and tax rates to monitor and influence a nation's economy. Though fiscal policies, government makes its public finance.

Which of the following is the wrong pair?

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. Share Market-Stock Exchange

  2. Income Tax -Monetary Policy

  3. Export Subsidy-Fiscal Policy

  4. General Price Index-Inflation

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Correct Option: B
Explanation:

Income tax is a form of direct tax. This comes under the fiscal policy of the government. 

Fiscal Policy is the mechanism by means of which a government makes adjustments to its planned spending and the imposed tax rates to monitor and thus in turn influence the performance of a country’s economy. 

Who is Chairman of $13th$ Finance Commission?

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. Dr. C. Rangarajan

  2. Mr. Vimal Jalan

  3. Dr. Vijay C. Kelkar

  4. None of the above

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Correct Option: C

Which of the following s the benefit of adopting a social security system?

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. Annual bonus

  2. Non financial incentives

  3. Old age pension

  4. None of the above

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Correct Option: C

In March 1999, the number of Industries reserved for public sector is reduced to _________.

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. 4

  2. 5

  3. 6

  4. 7

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Correct Option: C

The term public means ________.

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. household, firm and local authorities

  2. non-Banking Financial Institution, Non-Departmental PSU

  3. reserve of foreign banks, Government and International Monetary fund

  4. all the three

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Correct Option: D

Which of these activity is not included in service sector?

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. Tourism services.

  2. Education services.

  3. Mining services.

  4. Health and social welfare services.

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Correct Option: C