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CUET Economics 2026 PYQs23 May Shift 1. Free, no login required.

Macro

past year questions, CUET Economics 2026 23 May Shift 1

Government Budget

past year questions, Macro, CUET Economics 2026 23 May Shift 1

Easy

Which of the following statements explain the objectives (functions) of government budget?

A. Provide goods which are non-rivalrous in nature

B. Intervenes to stabilise the aggregate demand

C. Can stabilise economy through change in bank rate

D. Can change distribution of income and bring distribution which is fair by society

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 2

The budget performs the allocation function by providing public goods that are non-rivalrous and non-excludable (A), the stabilisation function by intervening to stabilise aggregate demand (B), and the distribution function by making the distribution of income fairer (D).

Changing the bank rate (C) is monetary policy conducted by the RBI, not a budgetary function. Hence A, B and D only.

Related questions:

2023: 29 May Shift 2

From the following data, Calculate Primary Deficit.

Rs (crore)
Revenue expenditure22,250
Capital expenditure28,000
Revenue receipts17,750
Capital receipts (net of borrowing)20,000
Interest payment5,000
Borrowings12,500

2022: 15 July Shift 2

Identify the incorrect statement of the union budget of India 2022- 23.

2022: 16 July Shift 2

_____ is included in the government budget as a capital receipt.

2026: 6 June Shift 1

The change in equilibrium output that results from a unit increase or decrease in both taxes and government spending is called.

2026: 20 May Shift 1

From the following data about the budget, determine the primary deficit.

ItemsAmount (In Rs. crore)
Revenue expenditure150
Capital receipts (excluding borrowing)105
Interest payments30
Revenue receipts120
Capital expenditure170

2022: 30 Aug Shift 2

Which of the following statements is true ?

(A) Fiscal deficit is the difference between the government's budgetary expenditure and budgetary receipts excluding borrowings.

(B) Primary deficit is the difference between total receipts and interest payments.

(C) Increase in revenue deficit will always lead to higher fiscal deficit.

(D) Primary deficit equals revenue deficit less interest payments.

(E) Revenue deficit refers to excess of government's revenue expenditure over its revenue receipts.

Choose the correct answer from the options given below :

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