Free Test Indian Economy Budget – Civil S...

Q1: What is the main objective of the Union Budget?

A. To estimate GDP B. To estimate import-export gap C. To present a financial statement of the government D. To estimate population growth

Q2: Which Article of the Constitution of India relates to the Annual Financial Statement?

A. Article 110 B. Article 112 C. Article 265 D. Article 300

Q3: What is a fiscal deficit?

A. Total revenue minus total expenditure B. Difference between capital and revenue expenditure C. Excess of total expenditure over total revenue excluding borrowings D. Total public sector borrowings

Q4: Who presents the Union Budget in India?

A. President B. Prime Minister C. Finance Minister D. Home Minister

Q5: What is the difference between Plan and Non-Plan expenditure?

A. Revenue vs Capital Expenditure B. Productive vs Non-Productive C. Central vs State Expenses D. There is no such difference now

Q6: Which of the following is NOT a component of Revenue Expenditure?

A. Interest payments B. Salaries of government employees C. Grants to states D. Loan disbursement

Q7: Primary deficit is equal to:

A. Fiscal deficit minus grants B. Fiscal deficit minus interest payments C. Revenue deficit minus interest payments D. Total expenditure minus borrowings

Q8: Which institution assists the Finance Ministry in preparing the budget?

A. SEBI B. NITI Aayog C. RBI D. Controller General of Accounts

Q9: The fiscal year in India runs from:

A. 1st January to 31st December B. 1st April to 31st March C. 1st July to 30th June D. 1st October to 30th September

Q10: Which of the following is NOT a source of non-tax revenue?

A. Dividends from PSUs B. Interest on loans C. Disinvestment D. Excise duties

Q11: Zero-based budgeting means:

A. Budget starts from zero every time B. No deficits are allowed C. Only capital budget is considered D. No salaries are included

Q12: Outcome budgeting focuses on:

A. Revenue generation only B. Expenditure control only C. Achieving pre-defined results D. Budgeting for defense only

Q13: Which committee recommended the merger of Plan and Non-Plan expenditure?

A. Kelkar Committee B. Rangarajan Committee C. Narsimham Committee D. Chanda Committee

Q14: What is Vote on Account?

A. Final approval of budget B. Spending approval till budget is passed C. Supplementary grant D. Budget for President’s expenses

Q15: Which ministry prepares the Economic Survey?

A. Ministry of Commerce B. Ministry of Finance C. Ministry of External Affairs D. NITI Aayog

Q16: Which tax was abolished after GST introduction?

A. Excise duty B. Income tax C. Corporate tax D. Service tax

Q17: The major share of revenue receipt in India comes from:

A. Direct taxes B. Indirect taxes C. Disinvestment D. Borrowings

Q18: Which is the first stage in budget preparation?

A. Revenue estimation B. Deficit calculation C. Pre-Budget consultation D. Budget speech

Q19: Which type of deficit includes borrowings?

A. Revenue deficit B. Fiscal deficit C. Primary deficit D. Effective revenue deficit

Q20: Effective Revenue Deficit = Revenue Deficit minus:

A. Interest payments B. Grants for capital creation C. Subsidies D. Pensions

Q21: Which Article of the Indian Constitution deals with the Annual Financial Statement?

A. Article 110 B. Article 112 C. Article 115 D. Article 280

Q22: Which body is responsible for preparing the Union Budget in India?

A. Parliament B. President C. Ministry of Finance D. Reserve Bank of India

Q23: When is the Union Budget usually presented in India?

A. 15th January B. 1st February C. 31st March D. 1st April

Q24: What is the term for the budget that focuses on estimating revenue and expenditure for the coming financial year?

A. Capital Budget B. Performance Budget C. Annual Financial Statement D. Interim Budget

Q25: Which of the following is NOT a component of government revenue?

A. Tax Revenue B. Non-Tax Revenue C. Capital Receipts D. Public Expenditure

Q26: Fiscal Deficit occurs when:

A. Revenue exceeds expenditure B. Expenditure exceeds revenue C. Imports exceed exports D. Taxes exceed spending

Q27: Which of the following is a capital receipt?

A. Income Tax B. Dividends from PSUs C. Disinvestment D. Interest receipts

Q28: Which committee recommended the change of the budget presentation date to 1st February?

A. NITI Aayog Committee B. Kelkar Committee C. Constitution Review Committee D. No committee, it was a policy decision

Q29: Zero-based budgeting was first introduced in India in which year?

A. 1986 B. 1991 C. 2000 D. 1977

Q30: Which of the following is NOT a plan expenditure?

A. Subsidies B. Defence expenditure C. Interest payments D. Education spending

Q31: Which part of the budget includes receipts and expenditure of the government of India?

A. Capital Budget only B. Revenue Budget only C. Both Revenue and Capital Budgets D. Supplementary Budget

Q32: Which of these taxes is part of Non-Tax Revenue?

A. Customs Duty B. GST C. Dividends from PSUs D. Corporate Tax

Q33: Who presents the Union Budget in Parliament?

A. President B. Prime Minister C. Finance Minister D. RBI Governor

Q34: What is a vote-on-account?

A. Budget for five years B. Temporary provision to withdraw money C. Budget for only revenue expenditure D. Expenditure outside CAG purview

Q35: What is the fiscal year period followed in India?

A. January to December B. April to March C. July to June D. March to February

Q36: Which body audits the accounts of the government?

A. Finance Ministry B. NITI Aayog C. CAG D. SEBI

Q37: Which of the following is NOT included in capital expenditure?

A. Loan to public enterprises B. Construction of schools C. Interest payments D. Purchase of machinery

Q38: Deficit financing in India is done through:

A. Raising taxes B. Borrowing from abroad C. Printing currency and borrowing D. Cutting subsidies

Q39: Who prepares the Economic Survey in India?

A. NITI Aayog B. Finance Ministry C. RBI D. Planning Commission

Q40: Which of the following is true about gender budgeting?

A. Only for women MPs B. Gender-biased allocation C. Allocating funds to support gender equity D. Cutting male employment funds

Quiz for Indian Economy Budget