Macro

Government Budget

Medium

Match List-I with List-II

List-I List-II
(A) Annual financial statement (I) Create liabilities or reduce financial assets.
(B) Capital receipts (II) Trade surplus.
(C) Capital expenditure (III) Main budget document.
(D) Export > Import (IV) Create financial assets or reduce liabilities.

Choose the correct answer from the options given below:

List-I	List-II
(A) Annual financial statement	(I) Create liabilities or reduce financial assets.
(B) Capital receipts	(II) Trade surplus.
(C) Capital expenditure	(III) Main budget document.
(D) Export > Import	(IV) Create financial assets or reduce liabilities.

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (III), (B) - (I), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (I), (C) - (IV), (D) - (II)

✅ Correct Option: 4

Option 1 -> Incorrect matching. Annual financial statement is not about creating liabilities.

Option 2 -> Incorrect. Capital expenditure does not relate to trade surplus.

Option 3 -> Incorrect. Annual financial statement does not create liabilities, and capital expenditure is not about trade surplus.

Option 4 -> (A) Annual financial statement is the main budget document presented to Parliament; (B) Capital receipts create liabilities like borrowings or reduce assets like disinvestment; (C) Capital expenditure creates assets like infrastructure or reduces liabilities; (D) Export > Import means trade surplus.

Hence, Option 4: (A) - (III), (B) - (I), (C) - (IV), (D) - (II) -> Annual financial statement is the primary budget document (Article 112). Capital receipts either create liabilities (borrowings) or reduce financial assets (disinvestment proceeds). Capital expenditure creates financial/physical assets or reduces liabilities. When exports exceed imports, it results in a trade surplus, indicating positive balance of trade. -> correct

2025: 3 June Shift 2

There is a constitutional requirement in India to present before the Parliament a statement of estimated receipts and expenditures of the government in respect of every financial year which runs from............

2026: 15 May Shift 1

The Proportional Income Tax, acts as an __________, a shock absorber because it makes disposable income, and thus consumer spending purposes less sensitive to fluctuation in GDP.

2022: 15 July Shift 2

Match List With List II

List I Description in Budget speech	List II Figures in per cent
A. Projected Fiscal Deficit in 2022-23.	I. (-16.67%)
B. States Fiscal deficit in 2022-23.	II. 6.4% of GDP
C. Change in dis-investment proceedings in FY 2022-23.	III. 35.4%
D. Change in Capex target in FY 2022-23.	IV. Upto 4% of GDP

Choose the correct answer from the options given below:

2026: 23 May Shift 1

Revenue receipts are those receipts which___________.

2025: 2 June Shift 1

Which of the following statements are incorrect?

(A) Loans from IMF is a Revenue Receipt.

(B) Capital Receipts are shown on the liabilities of the balance sheet.

(D) Revenue Deficit is the excess of capital receipts over the revenue receipts.

Choose the correct answer from the options given below:

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:

Solution

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