Public Finance and Fiscal Policy — Prelims Questions

Which of the following statements regarding the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, is/are correct? 1. It mandates the Central Government to take appropriate measures to reduce fiscal deficit. 2. It aims to eliminate the revenue deficit and achieve a fiscal deficit of 3% of GDP. 3. It applies to both the Central and State Governments. Select the correct answer using the code given below:

Consider the following components of government budget: 1. Interest payments 2. Subsidies 3. Defence capital expenditure 4. Disinvestment receipts Which of the above are classified as Revenue Expenditure?

If the Union Government's Total Expenditure is ₹40 lakh crore, Revenue Receipts are ₹25 lakh crore, Non-Debt Capital Receipts are ₹5 lakh crore, and Interest Payments are ₹8 lakh crore, what is the Fiscal Deficit and Primary Deficit (in lakh crore)?

Which of the following constitutional articles deals with the establishment of a Finance Commission in India?

The Goods and Services Tax (GST) in India is a: 1. Destination-based tax 2. Multi-stage tax 3. Tax on value addition 4. Direct tax Select the correct answer using the code given below:

Which of the following would be considered 'Non-Debt Capital Receipts' for the Union Government? 1. Market borrowings 2. Recovery of loans given to states 3. Disinvestment proceeds 4. External aid that is repayable Select the correct answer using the code given below: