Macro

Government Budget

Medium

The Fiscal Responsibility and Budget Management Act 2003 mandates the central government to lay before both houses of parliament. Which of the three statements along with the Annual Financial Statement?

Medium Term Fiscal Policy Statement, Fiscal Policy Strategy Management, and The Macroeconomic Framework Statement.

Medium Term Fiscal Policy Statement, Quarterly Macroeconomic Policy, and Microeconomic Accounting standard.

Fiscal Policy Review Report , Fiscal Policy Recommended Report, Field Survey on Macroeconomic Benchmarks.

Annual Stock Performance Data, Field Surveys on Unemployment Report, Citizen Feedback on Economy Data.

✅ Correct Option: 1

Option 1 -> Contains the three mandatory statements: Medium Term Fiscal Policy Statement, Fiscal Policy Strategy Statement (mentioned as Management), and Macroeconomic Framework Statement.

Option 2 -> Incorrect - mentions non-existent quarterly policy and microeconomic standards not mandated by FRBM Act.

Option 3 -> Incorrect - these review and survey reports are not part of FRBM Act requirements.

Option 4 -> Incorrect - stock data, unemployment surveys and citizen feedback are not mandated under FRBM Act 2003.

Hence, Option 1: Medium Term Fiscal Policy Statement, Fiscal Policy Strategy Management, and The Macroeconomic Framework Statement -> The FRBM Act 2003 mandates three key documents along with the Annual Financial Statement: (1) Medium Term Fiscal Policy Statement - outlines three-year rolling targets for fiscal indicators, (2) Fiscal Policy Strategy Statement - defines strategic priorities and policy changes for the upcoming year, and (3) Macroeconomic Framework Statement - assesses growth prospects, fiscal balance, and external sector developments. These documents ensure fiscal transparency and accountability in government budgeting. -> correct

2025: 29 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Capital receipts	(I) Excess of total expenditure over and above all total receipts of the government
(B) Corporate saving	(II) Borrowings of the government
(C) Budget deficit	(III) Retained earnings of firm
(D) Fiscal deficit	(IV) Create a liability for the government

Choose the correct answer from the options given below:

2023: 20 June Shift 1

Match List I with List II

LIST I	LIST II
A. Revenue Receipt	I. Increase in Liability
B. Capital Receipt	II. Do not increase in Asset
C. Revenue Expenditure	III. Increase in Asset
D. Capital Expenditure	IV. Do not increase Liability

Choose the correct answer from the options given below:

2025: 31 May Shift 1

Defense of the nation is a service provided by our armed forces. This service is.

Non -Public good which is non-rival and non excludable in consumption.
Public good which is non-rival and non excludable in consumption.
Non -Public good which is rival and non-excludable in consumption.
Public good which is rival and non-excludable in consumption.

2026: 23 May Shift 1

In a hypothetical economy, the total expenditure is Rs.700 crore, revenue receipts are Rs. 300 crore, non-debt capital receipts is Rs. 250 crore and net interest liability is Rs. 50 crore. The primary deficit for such an economy would be ___________.

2023: 20 June Shift 1

The Government Budget has a revenue deficit this can be financed by : ___________ .

A. Borrowings

B. Tax Revenue

C. Disinvestment

D. Indirect taxes

Choose the correct answer from the options given below:

2025: 14 May Shift 1

The 'Ricardian equivalence' view argued that in the face of high deficits, people save more. It is called 'equivalence' because it argues that taxation and borrowing are equivalent means of ...........

Financing expenditure
Financing borrowing
Financing Taxation
Financing deficit

The Fiscal Responsibility and Budget Management Act 2003 mandates the central government to lay before both houses of parliament. Which of the three statements along with the Annual Financial Statement?

Solution

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