Practice Budget, Fiscal Policy, Taxes and GST – GK Quiz with Answers – Level 3

Consider the following statements about the Union Budget:

1. Under Article 112, the estimated receipts and expenditure of the government for each financial year are laid before Parliament as the Annual Financial Statement.

2. The Finance Bill, presented with the budget, contains details of taxes imposed, abolished or changed.

3. The financial year in India runs from 1 January to 31 December.

Which of the statements given above is/are correct?

Match List-I with List-II:

Select the correct answer using the codes given below.

Consider the following statements about government receipts and expenditure:

1. The sale of shares of public sector companies is a capital receipt because it reduces the government's assets.

2. Interest payments are capital expenditure because they reduce the government's liabilities.

Which of the statements given above is/are correct?

A government's budget for a year has the following hypothetical figures: total expenditure ₹100 crore, revenue receipts ₹60 crore, non-debt capital receipts ₹10 crore and interest payments ₹12 crore. What is the primary deficit?

Arrange the following events in chronological order:

1. Goods and Services Tax implemented across India

2. Fiscal Responsibility and Budget Management Act passed

3. Constitution (101st Amendment) Act enacted

4. Economic reforms launched in India

Select the correct chronological order.

Consider the following statements about the Goods and Services Tax (GST):

1. A sale within a single state attracts IGST.

2. The GST Council is chaired by the Union Finance Minister.

3. IGST on inter-state supply is provided for in Article 269A and is collected by the Centre.

Which of the statements given above is/are correct?

Consider the following statements:

1. The provision of public goods such as national defence and roads falls under the allocation function of the budget.

2. Raising demand when it is too low and reducing it when it is too high is the redistribution function of the budget.

3. Indirect taxes are regressive in nature because they affect all income groups equally.

Which of the statements given above is/are correct?

Consider the following statements about government receipts:

1. Recovery of loans given by the government is a capital receipt.

2. Non-tax revenue is a capital receipt because it is not a tax.

3. Revenue receipts do not create a claim on the government.

Which of the statements given above is/are correct?

Match List-I with List-II:

Select the correct answer using the codes given below.

Consider the following statements about budget deficits:

1. Fiscal deficit equals total expenditure minus the sum of revenue receipts and non-debt capital receipts.

2. Revenue deficit equals total expenditure minus revenue receipts.

3. Fiscal deficit shows the total borrowing needed by the government.

Which of the statements given above is/are correct?