Government Budget and the Economy

Law and order, national defense, sanitation,etc are

• final goods

• intermediate goods

• public goods

• private goods

Which statement(s) is/are correct regarding revenue receipts?

• they reduce assets

• they create assets

• they reduce liability

• they do not create liability

Which statement(s) is/are correct regarding revenue expenditure?

• they do not create assets

• they create liability

• they reduce liability

• they create assets

Which statement(s) is/are correct regarding capital receipts?

• they create assets

• they create liability

• they reduce assets

• they reduce assets and (or) create liability

Which statement(s) is/are correct regarding capital expenditure?

• they create liability

• they create assets

• they reduce liability

• they reduce assets

• they create assets and (or) reduce liability

Which one of them is direct tax?

• Income tax

• GST

• Escheat

• Special Assessment

Which one of them is an Indirect tax

• Special Assessment Tax

• Excise Duty

• Fees

• Corporation Tax

Loans to state governments and union territories are a part of

• Revenue Receipts

• Capital Receipts

• Capital Expenditure

• Revenue Expenditure

Zero primary deficit means

• no liabilities with government

• the government has to resort to borrowing only to meet interest payments

• no interest payments

• no borrowing

Primary Deficit is a part of

• Revenue deficit

• Fiscal Deficit

• Borrowings

• Interest payments