Macro

Government Budget

Easy

When goods are financed through the budget and can be used without any direct payment, they are known as.......

Public goods.

Public provision.

Public production.

Private goods.

✅ Correct Option: 2

Option 1 -> Public goods refer to goods with non-excludable and non-rivalrous characteristics, not specifically about financing method.

Option 2 -> Public provision describes goods/services financed through government budget and provided without direct payment at point of use.

Option 3 -> Public production refers to goods produced by government sector, not necessarily about free provision.

Option 4 -> Private goods are excludable and rivalrous, requiring direct payment through market mechanisms.

Hence, Public provision -> When the government finances goods and services through its budget (using tax revenues) and makes them available to citizens without requiring direct payment at the point of consumption, this is called public provision. Examples include public healthcare in many countries, free education, and public parks. Unlike public goods (which describe the nature of the good), public provision describes the financing and delivery mechanism. The goods are paid for collectively through taxation rather than individual user fees. -> correct

2022: 19 July Shift 2

The government in its budget has announced the construction of seven textile parks under the scheme of mega-investment textile parks. Which objective of the government budget is most likely being reflected here ? (Choose the correct alternative).

2023: 20 June Shift 1

Which of the following are to be considered while Measuring Fiscal Deficit?

A. Capital expenditure

B. Revenue receipts

C. Debt creating receipts

D. Revenue expenditure

E. Deficit on current A/c

Choose the correct answer from the options given below:

2026: 19 May Shift 2

Match the LIST-I with LIST-II

LIST-I (Budgetory transactions)	LIST-II (Components)
A. Wealth tax	I. Capital Expenditure
B. Sale of shares in Public Sector Undertakings	II. Revenue Receipts
C. Interest payments on debt by the government	III. Non-debt creating capital receipts
D. Loans and advances by the central government to state	IV. Revenue Expenditure

Choose the correct answer from the options given below:

2026: 20 May Shift 1

If investment falls, government spending can be raised so that autonomous expenditure and equilibrium income remain the same. This deliberate action to stabilise the economy is often referred to as:

2025: 22 May Shift 2

Among the following, which features are correct with regard to Revenue receipts.

(A) Receipts that are redeemable.

(B) Recurring receipts that do not lead to a claim on the government.

(D) Receipts that take into account the effects of tax proposals made in the finance bill.

Choose the correct answer from the options given below:

2025: 2 June Shift 1

Primary Deficit can be zero if?

When goods are financed through the budget and can be used without any direct payment, they are known as.......

Solution

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