BUDGET AND FISCAL POLICY / PUBLIC FINANCE : PREVIOUS YEAR QUESTIONS :: ECONOMICS

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2011

Which one of the following statements appropriately describes the “fiscal stimulus”?

(a) It is a massive investment by the Government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth.

(b) It is an intense affirmative action of the Government to boost economic activity in the country.

(c) It is Government”s intensive action on financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation.

(d) It is an extreme affirmative action by the Government to pursue its policy of financial inclusion.

b

 

In the Union Budget 2011-12, a full exemption from the basic customs duty was extended to the bio-based asphalt (bioashphalt). 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 biosphalt for surfacing of the roads.

Which of the statements given above are correct?

(a) 1, 2 and 3 only

(b) 1, 3 and 4 only

(c) 2 and 4 only

(d) 1, 2, 3 and 4

b

 

2013

In India, deficit financing is used for raising resources for

(a) economic development

(b) redemption of public debt

(c) adjusting the balance of payments

(d) reducing the foreign debt

a

 

2014

With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?

Defence expenditure

Interest payments

Salaries and pensions

Subsidies

Select the correct answer using the code given below.

(a) 1 only

b) 2 and 3 only

(c) 1, 2, 3 and 4

(d) None of the above

c

 

2015

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.
(a) 1 and 3 only
(b) 2 and 3 only
(c) 1 only
(d) 1,2,3 and 4
Solution: a)

 

2016

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.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Solution: D

 

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.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2, 3 and 4

Solution: C

 

2018

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?

(a)1 only

(b)2 and 3 only

(c)1 and 3 only

(d)1, 2 and 3

ANS:C

 

2019

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 mandated by

(a) Long standing parliamentary convention

(b) Article 112 and article 110(1) of the constitution of India

(c) Article 114 of the Constitution of India

(d) Provisions of the Fiscal Responsibility and Budget Management act, 2003

Answer: D

 

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