Tag: public debt

Questions Related to public debt

Public finance means ______.

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

  1. people's money

  2. government's finance

  3. personal finance

  4. government and people's money

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Correct Option: B
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.

Which of the following is not a union tax?

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

  1. Stamp duties on financial documents

  2. Taxes on railway freights and fares

  3. A and b only

  4. Tolls

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Correct Option: C
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.

Receipts which are non-recurring by nature and whose benefit is enjoyed over a long period is called ________.

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

  1. revenue receipt

  2. capital receipt

  3. short term receipts

  4. capital profit

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Correct Option: B

The person who presents the central budget in the Lok Sabha is __________.

economics macro economic analysis public debt public debt main feature of tax

  1. finance minister

  2. prime minister

  3. chief minister

  4. speaker

Show answer
Correct Option: A
Explanation:

The person who presents the central budget in the Lok Sabha is Finance Minister.

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 _____.

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

  1. budget deficit

  2. revenue deficit

  3. fiscal deficit

  4. primary deficit

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Correct Option: C
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.

The central budget has to be approved by both the Houses of Parliament before ______.

economics macro economic analysis public debt public debt main feature of tax

  1. March ${31}^{st}$

  2. April ${1}^{st}$

  3. March ${3}^{th}$

  4. March ${1}^{st}$

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Correct Option: A
Explanation:

The central budget has to be approved by both the Houses of Parliament before March 31st.

Fiscal policy is concerned with which of the following?

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

  1. Export and import

  2. Public revenue and expenditure

  3. Issue of currency

  4. Population control

Show answer
Correct Option: B
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.

Rajeev Gandhi Equity Saving Scheme was announced in ________.

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

  1. 2012-13 budget

  2. 2011-12 budget

  3. 15th August 2012

  4. 2nd October 2011

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Correct Option: A

Indigo and Kingfisher are examples of _____________.

economics macro economic analysis public debt public debt main feature of tax

  1. private schools

  2. private airlines

  3. private ships

  4. private railways

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Correct Option: B

What is correct about a concessional loan in India in the cases of external borrowing ?

economics macro economic analysis public debt public debt main feature of tax

  1. An external loan which carries a grant element of 25 per cent or more.

  2. When the interest component on an external loan is not more then 50 per cent of the prevailing interest on the external commercial loans.

  3. When the loan is long-term and has at least 75 per cent grant component in it.

  4. None of the above.

Show answer
Correct Option: A
Explanation:

All the external loans which constitue at least 25 per cent (or more) grant (relaxation/subsidy) on its interest rates are considered 'concessional loans' by the government.