Government Budget

A Govt. Budget is prepared for a fiscal year running from :

• 1st January to 31st December

• 1st April to 31st December

• 1st April to 31st March

• 1st January to 30th April

Direct tax is called direct because it is collected directly from :

• The producers on goods produced

• the sellers on goods sold

• The buyers of goods

• The income earners

Which of the following is an indirect tax?

• Corporation tax

• Value Added tax

• Income tax

• Wealth tax

Pension payment is an example of :

• Plan expenditure

• Revenue expenditure

• Capital expenditure

• Non-plan expenditure

Subsidies are an example of :

• Revenue expenditure

• Capital expenditure

• Plan expenditure

• None of them

Which out of the following is a non-developmental expenditure?

• Scientific research

• Social Welfare

• Administration

• None of them

Repayment of loan is an example of :

• Capital expenditure

• Non plan expenditure

• Revenue expenditure

• Plan expenditure

Interest payment are subtracted from which deficit to arrive at Primary Deficit :

• Revenue Deficit

• Capital deficit

• Fiscal Deficit

• None of these

Borrowing in government budget is :

• Revenue Deficit

• Fiscal deficit

• Primary Deficit

• Deficit in taxes

Which of the following statement is true?

• Loan from IMF is a Revenue Receipt

• Higher revenue deficit necessarily leads to higher fiscal deficit

• Borrowing by a government represents a situation of fiscal deficit.

• Revenue deficit is the excess of capital receipts over the revenue receipts