CUET Economics Macro > Government Budget PYQs

The sales of bread have increased from 10 units to 15 units. Suppose the government imposed a unit tax of Rs. 5 on current production, then the total tax that the firm must pay to the government is?

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............

Which one is not the component of capital receipts?

Arrange the following events in chronological order as per the time period. (A) Gender Budgeting. (B) Fiscal Responsibility and Budget Management Act. (C) 101th Constitution Amendment Act. (D) Goods and Service Tax. Choose the correct answer from the options given below:

The government imposes taxes that do not depend on income, called?

Identify the incorrect statement from the following about the revenue budget of the government.

The Prime Minister of India, interacting with Pradhan Mantri Garib Kalyan Anna Yojana (PMGKY) beneficiaries, says that free ration has helped lakhs of poor during COVID pandemic. This is categorized as __________

In the Annual Budget 2025, the Government of India set up disinvestment targets of ₹80000 crore. Such proceeds from disinvestment can be classified as ________ receipts in the government budget as it leads to ________ of the government.

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:

"Government of India has recently implemented various measures (like cash transfers to senior citizens and widows)". The government is trying to achieve the objective of _______ using such measures.

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. (C) Interest payment by the government represents a representation of fiscal deficit. (D) Revenue Deficit is the excess of capital receipts over the revenue receipts. Choose the correct answer from the options given below:

Which of the following are the functions of Government Budget? (A) Restriction. (B) Allocation. (C) Redistribution. (D) Stabilisation. Choose the correct answer from the options given below:

Identify which of the following statements are correct? (A) Fiscal deficit is the difference between total revenue and total expenditure excluding borrowing of the government. (B) Fiscal deficit is the difference between total planned expenditure and total planned receipts of the government. (C) Primary deficit is the difference between total planned receipt and interest payments. (D) Fiscal deficit is the sum of primary deficit and interest payment. Choose the correct answer from the options given below:

Primary Deficit can be zero if?

Which of the following statements about national debt are correct? (A) Deficit can be thought of as a flow variable which adds to the stock of debt (B) The government finances debt through taxation, borrowing or printing money (C) Debt owned to foreigners involves a higher burden than debt owned to domestic agents and institutions (D) Government's debt financing crowds out private borrowers in financial markets Choose the correct answer from the options given below:

When the government has taken certain decision that can financed through the budget and can be used without any direct payment. Such move is known as.......... 1. Public Provision. 2. Public Production. 3. Public Goods. 4. Private Goods.

Defense of the nation is a service provided by our armed forces. This service is. 1. Non -Public good which is non-rival and non excludable in consumption. 2. Public good which is non-rival and non excludable in consumption. 3. Non -Public good which is rival and non-excludable in consumption. 4. Public good which is rival and non-excludable in consumption.

Net borrowing at home included which of the following?

Which of the following is the best example of Public provision and Public Production respectively?

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?

Which of the following best explains the constitutional aspect of Goods and Services Tax implementation in India?

Arrange the steps involved in preparation of the government budget. (A) Discussion and approval by the parliament. (B) Preparation of budget by the Ministry of Finance. (C) Implementation by the government. (D) Approval by the Cabinet. Choose the correct answer from the options given below:

Revenue deficit in the government budget can be managed through:- (A) Borrowings from RBI. (B) Disinvestment. (C) Increasing Subsidy. (D) Borrowings from the general public. Choose the correct answer from the options given below:

Identify which of the following is an example of non-debt capital receipts.

Match List-I with List-II | List-I | List-II | |---|---| | (A) Primary deficit | (I) Net borrowing at home + Borrowing from RBI + Borrowing from abroad | | (B) Fiscal deficit | (II) Fiscal deficit – Net interest liabilities | | (C) Revenue deficit | (III) Revenue expenditure – Revenue receipts | | (D) Revenue Expenditure | (IV) Plan and non-plan expenditure | Choose the correct answer from the options given below:

A shock absorber which makes disposable income, and thus consumer spending, less sensitive to fluctuations in GDP is called.

The government policy affecting the personal disposable income of households by making transfers and collecting taxes is known by...........

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

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:

Which of the following are features of fiscal policy? (A) Taxes and government spending are tools of fiscal policy. (B) It is implemented by the central bank. (C) It influences aggregate demand. (D) It involves adjustments in public debt. Choose the correct answer from the options given below:

Which of the following can help to reduce the Fiscal Deficit?

Goods and Services Tax became operational in the year:

To obtain an estimate of borrowing on account of current expenditures exceeding revenues, we need to calculate what has been called the primary deficit. Gross primary deficit...

The government imposes taxes that do not depend on income is called.

Consumers will not voluntarily pay for what they can get for free and for which there is no exclusive title to the property being enjoyed. These non-paying users are known as....?

Which of the following represents the borrowing requirements of the government for the purposes other than interest payments?

Match list I with List II in the context of the Government Budget: | List-I | List-II | |---|---| | (A) Purchase of stocks of a private company by the general government | (I) Capital receipts | | (B) Sale of equity of a public sector enterprise to private sector | (II) Revenue receipts | | (C) Payment of interest by the government on loans from financial institutions | (III) Capital expenditure | | (D) Stamp duty received by the government on property transactions in the country | (IV) Revenue expenditure | Choose the correct answer from the options given below:

Which of the following statements is true about public goods? (A) Public goods are non rival in nature. (B) Public goods are non-excludable in nature. (C) Public goods may be produced by the government or the private sector. (D) Public goods and public production can be used interchangeably. Choose the correct answer from the options given below:

The progressive taxation system seeks to achieve which of the following objectives of the government budget?

There may be times when demand exceeds available output under conditions of high employment and thus may give rise to inflation. In such situations, restrictive conditions may be needed to reduce demand. This intervention by the government is considered as

The difference between the government's total expenditure and its total receipts excluding borrowing.

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. (C) Receipts from different taxes. (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:

Fiscal Responsibility and Budget Management Act (FRBMA) was framed in which year.

Identify the tax imposed by the government that do not depend on income.

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

Budgetary deficits must be financed by either taxation, borrowing or printing money. Governments have mostly relied on borrowing, giving rise to......

A shock absorber which makes disposable income, and thus consumer spending, less sensitive to fluctuations in GDP is called......

Identify the objectives of government budget from the following. (A) Opening bank accounts of people. (B) Economic Stability. (C) Increase the employment rate in the economy. (D) Redistribution of income Choose the correct answer from the options given below:

The purchase of war tanks by Indian government from Russia will be classified as

Which of the following measures can be taken under fiscal policy to solve the problem of deficient demand in the economy?

Which of the following is a debt creating capital receipt of the government?

Due to recessionary pressure in an economy, suppose the government plans a deficit budget for a given financial year. Identify the correct sequence in which this will affect the economy. (A) Taxes will be reduced, and public spending will increase. (B) GDP will start rising. (C) Aggregate demand will rise. (D) The purchasing power of the people will increase. Choose the correct answer from the options given below:

Which of the following is not true about GST in India?

Match List-I with List-II | List-I | List-II | |---|---| | (A) Interest received from abroad | (I) revenue expenditure | | (B) Partial repayment of loan | (II) capital expenditure | | (C) Selling of equity of PSUs by the government | (III) revenue receipt | | (D) Salaries given to government employees | (IV) capital receipt | Choose the correct answer from the options given below:

When did GST came in effect in India?

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. (C) When a government spends more than it collects by way of revenue, it incurs a budget deficit. (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:

Which of the following are the features of public goods?

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 ........... 1. Financing expenditure 2. Financing borrowing 3. Financing Taxation 4. Financing deficit

The intervention of the government, whether to expand demand or reduce it, constitutes the ............... function. 1. Public production 2. Allocation 3. Redistribution 4. Stabilisation

In order to arrive Gross Primary Deficit what should be deducted from Gross Fiscal deficit? 1. Borrowing from abroad 2. Net factor income from abroad 3. Net Interest liabilities. 4. Transfers payments

The excess of Government's Revenue Expenditure over Revenue Receipts is called............... 1. Revenue Deficit 2. Fiscal Deficit 3. Monetary Deficit 4. Primary Deficit

The priorities of the government in the fiscal area, examining current policies and justifying any deviation in important fiscal measures, are set under ..........statement. 1. Medium-term Fiscal Policy 2. The Fiscal Policy Strategy 3. The Macroeconomic Framework 4. Fiscal Responsibility and Budget Management Act

The government can change the distribution of income and bring about a distribution that is considered 'fair' by society. This policy decision is called ........

From the following, identify the main features of Fiscal responsibility and Budget Management act. (A) The actual deficits may exceed the targets specified only on grounds of national security or natural calamity or such other exceptional grounds as the central government may specify. (B) The Act mandates the central government to take appropriate measures to reduce fiscal deficit to not more than 3 percent of GDP (C) The central government shall not borrow from the Reserve Bank of India except under specified conditions. (D) Measures to be taken to ensure greater transparency in fiscal operations. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Public Provision | (I) No feasible way to deny anyone to use public goods. | | (B) Stabalisation Function | (II) Goods are produced directly by the government. | | (C) Non-Excludable | (III) Financed through the budget and can be used without any direct payment. | | (D) Public Production | (IV) Whether to expand demand or reduce it. | Choose the correct answer from the options given below:

When governments intervene in the market to expand or reduce the demand, this course of action is .......

Article 112 deals with :

All those elements which create liability and decrease the assets of government are known as :

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:

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:

Choose the correct example of Revenue Expenditure.

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:

Which of the following is not true about Public goods?

Which deficit includes only such transactions that affect the current income and expenditure of the government ?

__________ is a revenue receipt of the Government.

Identify the correct option. Full form of 'ITC' in Indian Tax Context.

Which of the following are sources of revenue expenditure by the Government ? (A) Repayment of loans (B) Expenditure on Defence services (C) Central assistance for states (D) Interest payments (E) Lending to commercial banks Choose the correct answer from the options given below :

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 :

Disinvestment of Public Sector Undertakings, is a part of __________.

Revenue Deficit is

Which one is not the objective of government budget?

From the following data, Calculate Primary Deficit. | | Rs (crore) | |---|---| | Revenue expenditure | 22,250 | | Capital expenditure | 28,000 | | Revenue receipts | 17,750 | | Capital receipts (net of borrowing) | 20,000 | | Interest payment | 5,000 | | Borrowings | 12,500 |

Escheat is an example of:

What needs to be subtracted from gross fiscal deficit to get gross primary deficit ?

One kind of deficit in the annual Budget will have to be financed through borrowings. It indicates the total borrowing requirements of the government from all sources it is known as :

Receipts of the Government that are non-redeemable and cannot be reclaimed from the Government, are under which type of revenues of Government ?

Revenue Receipts in the government budget include : (A) Government Borrowings (B) Tax Revenue (C) Interest receipts on loans by government (D) Dividends earned by government on its investment Choose the correct answer from the options given below :

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 :

Wealth tax and gift tax have never bought in large amount of revenue for the government and thus are referred to as _______.

'Rs. 48,000 cr is allotted for PM Awas Yojana in this years budget'. Identify the government objective fulfilled from the statement above.

What is the value of education cess levied on Union taxes by the Government of India ?

Suppose you are a member of the "Advisory Committee to the Finance Minister of India". The finance minister is concerned about the rising Revenue Deficit in the budget. Which measure would you suggest to control the rising Revenue deficit of the government ?

Identify Indirect Tax among the following :

Public Goods are always :

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).

Which of the following deficit shows excess of government expenditure over receipts other than burden of interest payments ?

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 :

Identify the correct statements from the following: A. Revenue expenditure is any lay out that result in a decrease in financial assets or an increase in financial liabilities B. Capital expenditure is expenditure which results in creation of financial assets or reduction in financial liabilities C. Capital receipts are receipts which leads to reduction in financial assets or creation of liability D. Revenue receipts are receipts which lead to decrease in financial assets or increase of financial liability E. Revenue receipts are receipts which neither lead to reduction in financial assets nor creation of financial liability Choose the correct answer from the options given below:

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