Macro

Government Budget

Easy

When the government imposes taxes on income, then which function do they actually exercise?

Redistribution function.

Allocation function.

Stability function.

Consumption function.

✅ Correct Option: 1

Through taxes on income and transfer payments, the government alters the distribution of personal disposable income among households. This is the redistribution function of the budget; allocation concerns provision of public goods and stabilisation concerns income-employment fluctuations.

2025: 15 May Shift 1

Identify the correct statements from the following.

(A) Borrowings are non-debt creating capital receipt.

(B) Revenue deficit is same as borrowings of the government.

(D) The revenue deficit includes only such transactions that affect the current income and expenditure of the government.

Choose the correct answer from the options given below:

2025: 22 May Shift 1

Identify from the following, the three functions that operate through the expenditure and receipts of the government are ......

2025: 21 May Shift 1

Which of the following is not an advantage of GST?

2023: 30 May Shift 1

Match List - I with List - II.

List - I	List - II
(A) Revenue Receipts	(I) Expense on functions of government
(B) Capital Expenditure	(II) Disinvestment
(C) Capital Receipts	(III) Tax Revenue
(D) Revenue Expenditure	(IV) Expenses on building and machinery

Choose the correct answer from the options given below :

2022: 19 July Shift 2

Match List - I with List - II.

List - I (Transactions)	List - II (Heads)
(A) Loans extended by the Indian Government to the Sri Lankan Government	(I) Revenue Receipts
(B) Expenditure by the Government on Covid Vaccines	(II) Capital Receipts
(C) Dividend received by the Government on shares bought by it	(III) Capital Expenditure
(D) Public Provident Fund held by Public	(IV) Revenue Expenditure

Choose the correct answer from the options given below :

2026: 23 May Shift 1

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:

When the government imposes taxes on income, then which function do they actually exercise?

Solution

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