Topics / Economy
Government Budgeting
Asked 39 times in UPSC Prelims · first asked 1995 · last asked 2025
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Consider the following statements: I. Capital receipts create a liability or cause a reduction in the assets of the Government. II. Borrowings and disinvestment are capital receipts. III. Interest received on loans creates a liability of the Government. Which of the statements given above are correct?
2025Economy
Consider the following statements: I. Capital receipts create a liability or cause a reduction in the assets of the Government. II. Borrowings and disinvestment are capital receipts. III. Interest received on loans creates a liability of the Government. Which of the statements given above are correct?
Explanation
Capital receipts are those that create a liability or reduce the assets of the government. Borrowings and disinvestment fall under capital receipts as they lead to either a liability or a reduction in assets. Interest received on loans, however, is a revenue receipt and does not create a liability for the government.
Suppose the revenue expenditure is Rs. 80,000 crores and the revenue receipts of the Government are Rs. 60,000 crores. The Government budget also shows borrowings of Rs. 10,000 crores and interest payments of Rs. 6,000 crores. Which of the following statements are correct? I. Revenue deficit is Rs. 20,000 crores. II. Fiscal deficit is Rs. 10,000 crores. III. Primary deficit is Rs. 4,000 crores. Select the correct answer using the code given below.
2025Economy
Suppose the revenue expenditure is Rs. 80,000 crores and the revenue receipts of the Government are Rs. 60,000 crores. The Government budget also shows borrowings of Rs. 10,000 crores and interest payments of Rs. 6,000 crores. Which of the following statements are correct? I. Revenue deficit is Rs. 20,000 crores. II. Fiscal deficit is Rs. 10,000 crores. III. Primary deficit is Rs. 4,000 crores. Select the correct answer using the code given below.
Explanation
Revenue deficit is calculated as the excess of revenue expenditure over revenue receipts. In this case, it is Rs. 20,000 crores. Fiscal deficit includes borrowings, which are Rs. 10,000 crores here. Primary deficit is fiscal deficit minus interest payments, resulting in Rs. 4,000 crores in this scenario.
A country's fiscal deficit stands at Rs. 50,000 crores. It is receiving Rs. 10,000 crores through non-debt creating capital receipts. The country's interest liabilities are Rs. 1,500 crores. What is the gross primary deficit?
2025Economy
A country's fiscal deficit stands at Rs. 50,000 crores. It is receiving Rs. 10,000 crores through non-debt creating capital receipts. The country's interest liabilities are Rs. 1,500 crores. What is the gross primary deficit?
Explanation
Gross primary deficit is calculated by subtracting non-debt creating capital receipts and interest liabilities from the fiscal deficit. In this case, the gross primary deficit would be Rs. 50,000 crores (fiscal deficit) - Rs. 10,000 crores (non-debt creating capital receipts) - Rs. 1,500 crores (interest liabilities) = Rs. 48,500 crores.
Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct? I. It has recommended grants of Rs. 4,800 crores from the year 2022-23 to the year 2025-26 for incentivizing States to enhance educational outcomes. II. 45% of the net proceeds of Union taxes are to be shared with States. III. Rs. 45,000 crores are to be kept as performance-based incentive for all States for carrying out agricultural reforms. IV. It reintroduced tax effort criteria to reward fiscal performance. Select the correct answer using the code given below.
2025Economy
Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct? I. It has recommended grants of Rs. 4,800 crores from the year 2022-23 to the year 2025-26 for incentivizing States to enhance educational outcomes. II. 45% of the net proceeds of Union taxes are to be shared with States. III. Rs. 45,000 crores are to be kept as performance-based incentive for all States for carrying out agricultural reforms. IV. It reintroduced tax effort criteria to reward fiscal performance. Select the correct answer using the code given below.
Explanation
The 15th Finance Commission of India has recommended grants of Rs. 4,800 crores from 2022-23 to 2025-26 to incentivize States for improving educational outcomes. Additionally, it has proposed Rs. 45,000 crores as a performance-based incentive for all States to carry out agricultural reforms. The Commission has reintroduced tax effort criteria to reward States for their fiscal performance.
With reference to Union Budget, consider the following statements: 1. The Union Finance Minister on behalf of the Prime Minister lays the Annual Financial Statement before both the Houses of Parliament. 2. At the Union level, no demand for a grant can be made except on the recommendation of the President of India. Which of the statements given above is/are correct?
2024Economy
With reference to Union Budget, consider the following statements: 1. The Union Finance Minister on behalf of the Prime Minister lays the Annual Financial Statement before both the Houses of Parliament. 2. At the Union level, no demand for a grant can be made except on the recommendation of the President of India. Which of the statements given above is/are correct?
Explanation
The Union Finance Minister, on behalf of the President, presents the Annual Financial Statement before both Houses of Parliament. Additionally, no demand for a grant can be made at the Union level without the President's recommendation. Both statements are accurate in the context of the Union Budget process.
Consider the following: 1. Demographic performance 2. Forest and ecology 3. Governance reforms 4. Stable government 5. Tax and fiscal efforts. For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?
2023Economy
Consider the following: 1. Demographic performance 2. Forest and ecology 3. Governance reforms 4. Stable government 5. Tax and fiscal efforts. For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?
Explanation
The Fifteenth Finance Commission used three criteria other than population, area, and income distance for horizontal tax devolution. These criteria were forest and ecology, governance reforms, and tax and fiscal efforts. Demographic performance and stable government were not considered in this context.
With reference to the Indian economy, consider the following statements: 1. A share of the household financial savings goes towards government borrowings. 2. Dated securities issued at market-related rates in auctions form a large component of internal debt. Which of the above statements is/are correct?
2022Economy
With reference to the Indian economy, consider the following statements: 1. A share of the household financial savings goes towards government borrowings. 2. Dated securities issued at market-related rates in auctions form a large component of internal debt. Which of the above statements is/are correct?
Explanation
Household financial savings contribute to government borrowings through the purchase of government securities. Dated securities issued at market-related rates in auctions are a significant component of the government's internal debt. This highlights the interconnection between household savings, government borrowings, and the structure of internal debt in the Indian economy.
Along with the Budget, the Finance Minister also places other documents before the Parliament which include 'The Macro Economic Framework Statement'. The aforesaid document is presented because this is mandated by
2020Economy
Along with the Budget, the Finance Minister also places other documents before the Parliament which include 'The Macro Economic Framework Statement'. The aforesaid document is presented because this is mandated by
Explanation
In addition to the Budget, the Finance Minister presents various documents to Parliament, including 'The Macro Economic Framework Statement'. This document is required to be presented according to the provisions of the Fiscal Responsibility and Budget Management Act, 2003.
Consider the following statements 1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments. 2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments. 3. As per the Constitution of India, it is mandatory for a State to take the Central Government's consent for raising any loan if the former owes any outstanding liabilities to the latter. Which of the statements given above is/are correct?
2018Economy
Consider the following statements 1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments. 2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments. 3. As per the Constitution of India, it is mandatory for a State to take the Central Government's consent for raising any loan if the former owes any outstanding liabilities to the latter. Which of the statements given above is/are correct?
Explanation
According to the Fiscal Responsibility and Budget Management (FRBM) Review Committee Report, the recommended debt to GDP ratio for the general government by 2023 is 60%, with 40% for the Central Government and 20% for the State Governments. The Central Government's domestic liabilities are around 46% of GDP, not 21% as stated in statement 2. Therefore, the correct statements are 1 and 3.
Consider the following statements 1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments. 2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments. 3. As per the Constitution of India, it is mandatory for a State to take the Central Government's consent for raising any loan if the former owes any outstanding liabilities to the latter. Which of the statements given above is/are correct?
2018Economy
Consider the following statements 1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments. 2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments. 3. As per the Constitution of India, it is mandatory for a State to take the Central Government's consent for raising any loan if the former owes any outstanding liabilities to the latter. Which of the statements given above is/are correct?
Explanation
The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general government by 2023, with 40% for the Central Government and 20% for the State Governments. However, the Central Government's domestic liabilities are around 46% of the GDP, not 21% as stated in the second statement. The Constitution of India mandates that a State must obtain consent from the Central Government for raising a loan if the State has outstanding liabilities to the Central Government. Therefore, the correct statements are the first and third ones, making option (c) the correct answer.
There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit? 1. Reducing revenue expenditure 2. Introducing new welfare schemes 3. Rationalizing subsidies 4. Reducing import duty. Select the correct answer using the code given below.
2016Economy
There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit? 1. Reducing revenue expenditure 2. Introducing new welfare schemes 3. Rationalizing subsidies 4. Reducing import duty. Select the correct answer using the code given below.
Explanation
To decrease the persistent deficit budget, the government can take actions to boost income and decrease spending. This includes cutting down on revenue expenditure and streamlining subsidies.
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.
2016Economy
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.
Explanation
In the capital budget of the Government of India, items such as loans raised, capital expenditure for asset acquisition, and loans and advances given to State and Union Territory Governments are considered. This budget deals with financial gains and outlays related to long-term investments and development projects. The correct answer to the question is option (d), which includes all the mentioned items in the capital budget.
With reference to the Union Government, consider the following statements: 1. The Department of Revenue is responsible for the preparation of Union Budget that is presented to the Parliament. 2. No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India. 3. All the disbursements made from Public Account also need the authorization from the Parliament of India. Which of the statements given above is/are correct?
2015Economy
With reference to the Union Government, consider the following statements: 1. The Department of Revenue is responsible for the preparation of Union Budget that is presented to the Parliament. 2. No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India. 3. All the disbursements made from Public Account also need the authorization from the Parliament of India. Which of the statements given above is/are correct?
Explanation
In the context of the Union Government, the Department of Revenue is not responsible for preparing the Union Budget that is presented to Parliament. It is actually the Department of Economic Affairs under the Ministry of Finance that handles this task. Withdrawals from the Consolidated Fund of India cannot be made without Parliament's authorization. Similarly, disbursements from the Public Account also require approval from Parliament. Therefore, the correct statement among the options provided is that no amount can be withdrawn from the Consolidated Fund of India without authorization from the Parliament of India.
There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit? 1. Reducing revenue expenditure 2. Introducing new welfare schemes 3. Rationalizing subsidies 4. Expanding industries. Select the correct answer using the code given below.
2015Economy
There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit? 1. Reducing revenue expenditure 2. Introducing new welfare schemes 3. Rationalizing subsidies 4. Expanding industries. Select the correct answer using the code given below.
Explanation
To tackle a persistent deficit budget, the government can take various measures to reduce the shortfall. One effective strategy is to decrease revenue expenditure, which can help in balancing the budget. Additionally, rationalizing subsidies can also contribute to reducing the deficit by cutting down unnecessary expenses. Introducing new welfare schemes and expanding industries, on the other hand, may lead to an increase in government spending, exacerbating the deficit issue. Therefore, the most suitable actions to reduce the deficit would be to focus on reducing revenue expenditure and rationalizing subsidies, as indicated by option (a).
With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure? 1. Defence expenditure 2. Interest payments 3. Salaries and pensions 4. Subsidies. Select the correct answer using the code given below.
2014Economy
With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure? 1. Defence expenditure 2. Interest payments 3. Salaries and pensions 4. Subsidies. Select the correct answer using the code given below.
Explanation
Non-plan expenditure in the Union Budget includes interest payments, subsidies for items like food and fertilizers, government employee salaries and pensions, grants to states and union territories, police, economic services in different sectors, and defense.
In India, deficit financing is used for raising resources for
2013Economy
In India, deficit financing is used for raising resources for
Explanation
Deficit financing in India involves the shortfall between the government's spending and its income. The main purpose of deficit financing is to stimulate economic growth using artificial methods.
Which of the following is/are among the noticeable features of the recommendations of the Thirteenth Finance Commission? 1. A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design 2. A design for the creation of lakhs of jobs in the next ten years in consonance with India's demographic dividend 3. Devolution of a specified share of central taxes to local bodies as grants. Select the correct answer using the codes given below:
2012Economy
Which of the following is/are among the noticeable features of the recommendations of the Thirteenth Finance Commission? 1. A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design 2. A design for the creation of lakhs of jobs in the next ten years in consonance with India's demographic dividend 3. Devolution of a specified share of central taxes to local bodies as grants. Select the correct answer using the codes given below:
Explanation
The recommendations of the Thirteenth Finance Commission include a plan for the Goods and Services Tax, as well as a compensation package tied to following the proposed plan. Additionally, the commission suggests devolving a specified portion of central taxes to local bodies as grants. Statement 2, which mentions creating millions of jobs in the next decade in line with India's demographic dividend, is not part of the recommendations. The correct answer is option (c), which includes features 1 and 3 only.
Which of the following are the methods of Parliamentary control over public finance in India? 1. Placing Annual Financial Statement before the Parliament 2. Withdrawal of moneys from Consolidated Fund of India only after passing the Appropriation Bill 3. Provisions of supplementary grants and vote-on-account 4. A periodic or at least a mid-year review of programme of the Government against macroeconomic forecasts and expenditure by a Parliamentary Budget Office 5. Introducing Finance Bill in the Parliament. Select the correct answer using the codes given below:
2012Economy
Which of the following are the methods of Parliamentary control over public finance in India? 1. Placing Annual Financial Statement before the Parliament 2. Withdrawal of moneys from Consolidated Fund of India only after passing the Appropriation Bill 3. Provisions of supplementary grants and vote-on-account 4. A periodic or at least a mid-year review of programme of the Government against macroeconomic forecasts and expenditure by a Parliamentary Budget Office 5. Introducing Finance Bill in the Parliament. Select the correct answer using the codes given below:
Explanation
In India, the methods of Parliamentary control over public finance include presenting the Annual Financial Statement to Parliament, withdrawing funds from the Consolidated Fund of India only after the Appropriation Bill is passed, providing supplementary grants and vote-on-account, and introducing the Finance Bill in Parliament. This ensures oversight and accountability in financial matters.
When the annual Union Budget is not passed by the Lok Sabha?
2011Economy
When the annual Union Budget is not passed by the Lok Sabha?
Explanation
If the Lok Sabha does not pass the annual Union Budget, it is considered a vote of no confidence in the government. In such a situation, the Prime Minister submits the resignation of the Council of Ministers.
In the union budget 2011-12, a full exemption from the basic customs duty was extended to the bio-based asphalt (bio-asphalt). What is the importance of this material? 1. Unlike traditional asphalt, bio-asphalt is not based on fossil fuels. 2. Bioasphalt can be made from non-renewable resources. 3. Bioasphalt can be made from organic waste materials. 4. It is eco-friendly to use bioasphalt for surfacing of the roads. Which of the statements given above are correct?
2011Economy
In the union budget 2011-12, a full exemption from the basic customs duty was extended to the bio-based asphalt (bio-asphalt). What is the importance of this material? 1. Unlike traditional asphalt, bio-asphalt is not based on fossil fuels. 2. Bioasphalt can be made from non-renewable resources. 3. Bioasphalt can be made from organic waste materials. 4. It is eco-friendly to use bioasphalt for surfacing of the roads. Which of the statements given above are correct?
Explanation
In the union budget 2011-12, bio-asphalt received a complete exemption from the basic customs duty. This material is important because it differs from traditional asphalt by not relying on fossil fuels. Bio-asphalt can be produced from organic waste materials, making it an eco-friendly option for road surfacing. The correct statements are 1, 3, and 4.
With reference to the Finance Commission of India, which of the following statements is correct?
2011Economy
With reference to the Finance Commission of India, which of the following statements is correct?
Explanation
The Finance Commission of India provides recommendations on how to divide the tax revenues and grants-in-aid between the central government and the state governments.
What is the difference between 'vote-on-account' and 'interim budget'? 1. The provision of a 'vote-on-account' is used by a regular Government, while an 'interim budget' is a provision used by a caretaker Government 2. A 'vote-on-account' only deals with the expenditure in Government budget, while an 'interim budget' includes both expenditure and receipts. Which of the statements given above is/are correct?
2011Economy
What is the difference between 'vote-on-account' and 'interim budget'? 1. The provision of a 'vote-on-account' is used by a regular Government, while an 'interim budget' is a provision used by a caretaker Government 2. A 'vote-on-account' only deals with the expenditure in Government budget, while an 'interim budget' includes both expenditure and receipts. Which of the statements given above is/are correct?
Explanation
In the context of 'vote-on-account' and 'interim budget', the difference lies in their respective users: a 'vote-on-account' is utilized by a regular Government, while an 'interim budget' is employed by a caretaker Government. Furthermore, a 'vote-on-account' specifically addresses Government expenditure, whereas an 'interim budget' encompasses both expenditure and receipts. The correct statement among the options provided is the second one, which states that only statement 2 is accurate. Regarding the original statement, it is clarified that the Interim Budget is not presented by a caretaker Government, as it is actually presented by the Incoming Government or a new Government.
Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)? 1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt. 2. The Government no longer intends to retain the management control of the CPSEs. Which the correct statements given above is/are correct?
2011Economy
Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)? 1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt. 2. The Government no longer intends to retain the management control of the CPSEs. Which the correct statements given above is/are correct?
Explanation
The Government of India is selling its equity in Central Public Sector Enterprises (CPSEs) to generate revenue primarily for repaying external debt. Additionally, the government no longer plans to maintain management control of the CPSEs. However, despite the intention to retain management control, fiscal limitations are prompting the government to opt for disinvestment. Therefore, neither of the statements provided in the question is accurate.
All revenues received by the Union Government by way of taxes and other receipts for the conduct of Government business are credited to the?
2011Economy
All revenues received by the Union Government by way of taxes and other receipts for the conduct of Government business are credited to the?
Explanation
In accordance with Article 266(1) of the Indian Constitution, all income collected by the Union Government through taxes and other means, along with any loans obtained through treasury bills or internal and external sources, as well as any loan repayments received by the Union Government, are deposited into the Consolidated Fund of India.
Which one of the following is responsible for the preparation and presentation of Union Budget to the Parliament?
2010Economy
Which one of the following is responsible for the preparation and presentation of Union Budget to the Parliament?
Explanation
The Department of Economic Affairs (DEA) is tasked with the responsibility of preparing and presenting the Union Budget to the Parliament.
With reference to the National Investment Fund to which the disinvestment proceeds are routed, consider the following statements: 1. The assets in the National Investment Fund are managed by the Union Ministry of Finance. 2. The National Investment Fund is to be maintained within the Consolidated Fund of India. 3. Certain Asset Management companies are appointed as the fund managers. 4. A certain proportion of annual income is used for financing select social sectors. Which of the statements given above is/are correct?
2010Economy
With reference to the National Investment Fund to which the disinvestment proceeds are routed, consider the following statements: 1. The assets in the National Investment Fund are managed by the Union Ministry of Finance. 2. The National Investment Fund is to be maintained within the Consolidated Fund of India. 3. Certain Asset Management companies are appointed as the fund managers. 4. A certain proportion of annual income is used for financing select social sectors. Which of the statements given above is/are correct?
Explanation
In January 27, 2005, the government established the 'National Investment Fund' (NIF), which is overseen by professionals. A portion of this fund is allocated for investment in social sectors.
Among other things, which one of the following was the purpose for which the Deepak Parekh Committee was constituted?
2009Economy
Among other things, which one of the following was the purpose for which the Deepak Parekh Committee was constituted?
Explanation
The Deepak Parekh Committee was set up with the aim of suggesting measures for financing the development of infrastructure.
Who among the following have been the Union Finance Ministers of India?
2007Economy
Who among the following have been the Union Finance Ministers of India?
Explanation
In the history of India, the individuals who have served as Union Finance Ministers are VP Singh from 1985 to 1987, R Venkataraman from 1980 to 1982, YB Chavan from 1971 to 1975, and Pranab Mukherjee from 1982 to 1985 and then from February 2009 to the present. The correct answer to the question of identifying the Union Finance Ministers of India is option (d) - 1, 2, 3, and 4.
Which one of the following statements is correct? Fiscal Responsibility and Budget Management Act (FRBMA) concerns:
2006Economy
Which one of the following statements is correct? Fiscal Responsibility and Budget Management Act (FRBMA) concerns:
Explanation
The Fiscal Responsibility and Budget Management Act (FRBMA) aims to reduce the fiscal deficit to 3% and eliminate the revenue deficit by the year 2008.
Consider the following statements: 1. The Oil Pool Account of Government of India was dismantled with effect from 1-4-2002 2. Subsidies on PDS kerosene and domestic LPG are borne by Consolidated Fund of India 3. An expert committee headed by Dr. R. A. Mashelkar to formulate a national auto fuel policy recommended that Bharat Stage - II Emission Norms should be applied throughout the country by 1 April, 2004 Which of the statements given above are correct?
2004Economy
Consider the following statements: 1. The Oil Pool Account of Government of India was dismantled with effect from 1-4-2002 2. Subsidies on PDS kerosene and domestic LPG are borne by Consolidated Fund of India 3. An expert committee headed by Dr. R. A. Mashelkar to formulate a national auto fuel policy recommended that Bharat Stage - II Emission Norms should be applied throughout the country by 1 April, 2004 Which of the statements given above are correct?
Explanation
The Oil Pool Account of the Government of India was abolished from 1st April 2002. Subsidies for PDS kerosene and domestic LPG are funded by the Consolidated Fund of India. An expert committee led by Dr. R. A. Mashelkar proposed that Bharat Stage - II Emission Norms should be implemented nationwide by 1st April 2004. The correct statements are 1 and 2, making the answer (a).
With reference to Indian public finance, consider the following statements: 1. Disbursements from Public Accounts of India are subject to the Vote of the Parliament 2. The Indian Constitution provides for the establishment of a Consolidated Fund, a Public Account and a Contingency Fund for each State 3. Appropriations and disbursements under the Railway Budget are subject to the same form of parliamentary control as other appropriations and disbursements Which of the statements given above are correct?
2004Economy
With reference to Indian public finance, consider the following statements: 1. Disbursements from Public Accounts of India are subject to the Vote of the Parliament 2. The Indian Constitution provides for the establishment of a Consolidated Fund, a Public Account and a Contingency Fund for each State 3. Appropriations and disbursements under the Railway Budget are subject to the same form of parliamentary control as other appropriations and disbursements Which of the statements given above are correct?
Explanation
In Indian public finance, there are certain key provisions regarding the management of funds. The Constitution establishes a Consolidated Fund and a Public Account for each State, as well as a Contingency Fund under specific Articles. It is important to note that disbursements from the Public Accounts of India do not require approval through a Parliamentary vote.
Consider the following statements: In India, stamp duties on financial transactions are: 1. levied and collected by the State Government 2. appropriated by the Union Government. Which of these statements is/are correct?
2003Economy
Consider the following statements: In India, stamp duties on financial transactions are: 1. levied and collected by the State Government 2. appropriated by the Union Government. Which of these statements is/are correct?
Explanation
In India, stamp duties on financial transactions are collected by the State Government and then used by the State Government for its own purposes.
With reference to the Indian Public Finance, consider the following statements: 1. External liabilities reported in the Union Budget are based on historical exchange rates 2. The continued high borrowing has kept the real interest rates high in the economy 3. The upward trend in the ratio of Fiscal Deficit of GDP a recent years has an adverse effect on private investment 4. Interest payments is the single largest component of the non-plan revenue expenditure of the Union Government. Which of these statements are correct?
2002Economy
With reference to the Indian Public Finance, consider the following statements: 1. External liabilities reported in the Union Budget are based on historical exchange rates 2. The continued high borrowing has kept the real interest rates high in the economy 3. The upward trend in the ratio of Fiscal Deficit of GDP a recent years has an adverse effect on private investment 4. Interest payments is the single largest component of the non-plan revenue expenditure of the Union Government. Which of these statements are correct?
Explanation
In Indian Public Finance, the statement regarding the adverse effect of the increasing ratio of Fiscal Deficit to GDP on private investment is correct. Additionally, the statement about high borrowing leading to elevated real interest rates in the economy is also accurate.
The Union Budget 2000 awarded a Tax Holiday for the North-Eastern Region to promote industrialisation for:
2001Economy
The Union Budget 2000 awarded a Tax Holiday for the North-Eastern Region to promote industrialisation for:
Explanation
In the Union Budget of 2000, a Tax Holiday was granted for the North-Eastern Region to encourage industrial growth for a duration of 10 years.
Match List I with List II: List-I (Term): A. Fiscal deficit, B. Budget deficit, C. Revenue deficit, D. Primary deficit. List-II (Explanation): 1. Excess of Total Expenditure over Total Receipts, 2. Excess of Revenue Expenditure over revenue receipts, 3. Excess of Total Expenditure over Total Receipts less borrowings, 4. Excess of Total Expenditure over Total Receipts less borrowings and Interest Payments
2001Economy
Match List I with List II: List-I (Term): A. Fiscal deficit, B. Budget deficit, C. Revenue deficit, D. Primary deficit. List-II (Explanation): 1. Excess of Total Expenditure over Total Receipts, 2. Excess of Revenue Expenditure over revenue receipts, 3. Excess of Total Expenditure over Total Receipts less borrowings, 4. Excess of Total Expenditure over Total Receipts less borrowings and Interest Payments
Explanation
In the Indian Economy, there are four key terms related to deficits: Fiscal deficit, Budget deficit, Revenue deficit, and Primary deficit. Fiscal deficit is the excess of Total Expenditure over Total Receipts, Budget deficit is the excess of Revenue Expenditure over revenue receipts, Revenue deficit is the excess of Total Expenditure over Total Receipts less borrowings, and Primary deficit is the excess of Total Expenditure over Total Receipts less borrowings and Interest Payments. When looking at specific calculations, Revenue deficit is calculated as revenue receipts minus Revenue expenditure. Budget deficit is calculated as Total receipts minus Total expenditure. Fiscal deficit is calculated as Revenue receipts plus Non-debt creating capital receipts minus Total expenditure. Primary deficit is calculated as Fiscal deficit minus Interest payments.
Assertion (A): Fiscal deficit is greater than budgetary deficit. Reason (R): Fiscal deficit is the borrowing from the Reserve Bank of India plus other liabilities of the Government to meet its expenditure.
1999Economy
Assertion (A): Fiscal deficit is greater than budgetary deficit. Reason (R): Fiscal deficit is the borrowing from the Reserve Bank of India plus other liabilities of the Government to meet its expenditure.
Explanation
In the Indian economy, the fiscal deficit is the amount by which the government's total expenditure exceeds its total receipts. It includes not only the budget deficit but also borrowings and other liabilities. Therefore, it is correct to say that the fiscal deficit is greater than the budgetary deficit. This explains why Assertion (A) is true and Reason (R) is the correct explanation of (A), making option (a) the correct choice.
The Minimum Alternative Tax (MAT) was introduced in the Budget of the Government of India for the year:
1997Economy
The Minimum Alternative Tax (MAT) was introduced in the Budget of the Government of India for the year:
Explanation
The Minimum Alternative Tax (MAT) was introduced in the Government of India's budget for the fiscal year 1996-97. MAT mandates that a company must pay a minimum tax of 7% of their book profit if the tax calculated on their total income under regular tax laws is lower than this amount.
Which of the following are among the non-plan expenditures of the Government of India? 1. Defence expenditure 2. Subsidies 3. All expenditures linked with the previous plan periods 4. Interest payment
1995Economy
Which of the following are among the non-plan expenditures of the Government of India? 1. Defence expenditure 2. Subsidies 3. All expenditures linked with the previous plan periods 4. Interest payment
Explanation
In the context of Government of India's expenditures, non-plan expenditures refer to costs that are not directly related to development projects. These include expenses such as interest payments, subsidies, defense spending, and administrative costs. Additionally, non-plan expenditures encompass any financial outlays associated with projects that were not completed in previous planning periods.
The largest source of financing the public sector outlay of the Eighth Five Year Plan comes from:
1995Economy
The largest source of financing the public sector outlay of the Eighth Five Year Plan comes from:
Explanation
In the Eighth Five Year Plan, the primary source of funding for the public sector budget came from deficit financing.