TRB PG Assistant - Budgetary procedure - types of budget, deficit financing and methods, role and objectives of budgetary policy, budgetary trends in India since independence, objectives and instruments of fiscal policy, fiscal policy in India One Line Questions & Answers

1. The FRBM Act mandates that the fiscal deficit should not exceed: — 3% of GDP

2. The 'Zero-Based Budgeting' (ZBB) approach requires: — Every expenditure to be justified and approved anew each budget cycle

3. The 'Consolidated Fund' of India contains: — All public money received by the Government of India

4. What is the constitutional provision related to the presentation of the Union Budget in India? — Article 112

5. Which article of the Indian Constitution deals with the Finance Commission? — Article 280

6. What does 'discretionary fiscal policy' entail? — Government actions taken to influence aggregate demand

7. A budget where government expenditure exceeds government revenue is known as a: — Deficit budget

8. Which of the following is an instrument of fiscal policy? — Government borrowing

9. The 'Public Account' of India consists of funds which: — Do not belong to the government and are held in trust

10. Which of the following is a non-tax revenue for the Indian government? — Profits from public sector undertakings

11. The 'balanced budget multiplier' states that an equal increase in government spending and taxes will: — Increase GDP by the same amount

12. Which type of budget aims to balance government revenue with expenditure? — Balanced budget

13. Which of the following is a component of 'Revenue Receipts'? — Income tax

14. The primary objective of fiscal policy in India is to: — Ensure price stability and equitable distribution of income

15. Which of the following is a component of 'Revenue Expenditure'? — Interest payments on debt

16. The concept of 'development expenditure' in India's budget refers to: — Expenditure on infrastructure, education, and health

17. The 'Contingency Fund' of India is used for: — Meeting unforeseen expenditure for which Parliament has not voted

18. The 'Monetization of Deficit' refers to: — Financing the government deficit by printing money

19. What is the 'Primary Deficit'? — Fiscal Deficit minus interest payments

20. What was a significant budgetary trend in India immediately after independence? — Focus on deficit financing for rapid industrialization

21. The FRBM Act (Fiscal Responsibility and Budget Management Act) in India aims to: — Reduce the fiscal deficit and improve fiscal discipline

22. Which of the following best describes the 'crowding out' effect in economics? — Increased government borrowing leads to higher interest rates and reduced private investment

23. During periods of high inflation, a government is likely to adopt a fiscal policy that: — Reduces government spending and increases taxes

24. What is the primary goal of 'fiscal consolidation'? — Reducing the fiscal deficit and public debt

25. The 'expenditure on subsidies' in India's budget is primarily aimed at: — Reducing income inequality and supporting vulnerable sections

26. An expansionary fiscal policy typically involves: — Decreasing taxes and increasing government spending

27. What does 'deficit financing' primarily involve? — Borrowing or printing money to cover a budget deficit

28. The 'Gini coefficient' is often used to measure: — Income inequality

29. Fiscal policy refers to the government's use of: — Taxation and government spending

30. Which of the following is a component of 'Capital Receipts'? — Disinvestment proceeds

31. What is the term for the budget presented when the Lok Sabha is dissolved? — Interim budget

32. Which of the following is a common method of deficit financing? — Issuing government bonds

33. Which committee in India recommended the introduction of the FRBM Act? — N. K. Singh Committee

34. The process of 'budgetary procedure' includes: — Preparation, presentation, and implementation of the budget

35. Which of the following is NOT a direct objective of fiscal policy in India? — Managing the exchange rate

36. The 'automatic stabilizers' in fiscal policy are features that: — Automatically counteract economic fluctuations

37. Which of the following is a component of 'Capital Expenditure'? — Expenditure on creation of assets

38. A contractionary fiscal policy aims to: — Reduce aggregate demand

39. The 'Fiscal Deficit' represents: — The total borrowing of the government

40. A 'supplementary budget' is presented when: — Additional funds are required beyond the original budget

41. In the context of Indian budgets, 'Vote on Account' is a provision that allows: — The Parliament to approve the budget before the fiscal year begins

42. In India, the budget is presented to Parliament on: — Such date as the President may fix

43. The 'Budget Speech' in India is typically presented by: — The Finance Minister

44. The concept of 'fiscal federalism' in India pertains to: — The division of financial powers and responsibilities between the Union and State governments

45. A 'Performance Budget' focuses on: — The physical and financial targets of government programs

46. What is the primary role of the Ministry of Finance in the budgetary procedure? — To prepare and present the Union Budget

47. What is the primary objective of a budget in public finance? — To allocate resources and achieve socio-economic objectives

48. What is the role of the Finance Commission in India concerning the budget? — To recommend the distribution of tax revenues between the Union and States

49. Which of the following is a key objective of India's budgetary policy? — To promote economic growth and stability

50. What is the 'Revenue Deficit' in a budget? — When government's revenue expenditure exceeds its revenue receipts

Budgetary procedure - types of budget, deficit financing and methods, role and objectives of budgetary policy, budgetary trends in India since independence, objectives and instruments of fiscal policy, fiscal policy in India - One Line Questions