PUBLIC FINANCE

PUBLIC expenditure refers to expenditures made by................

• Private firms

• Public authorities

• NGOs

• International agencies.

Public expenditure, if spent properly, exerts an important influence on the entire economy.

• True

• False

Public expenditure helps to reduce income inequality.

• True

• False

Which of the following is a direct tax?

• Excise duty

• Customs duty

• Service tax

• Income tax

Government generally impose higher taxes on rich, moderate taxes on the not- so- rich and exempt the poor from paying taxes. This principal of taxation is called.............

• Progressive taxation policy

• Heavy taxation policy

• Direct taxation policy

• Protective taxation policy

In an indirect tax, the incidence and impact falls on.......................

• the same person

• the different person

............taxes are generally not shifted and are paid in lump sum for the whole year.

• Direct tax

• Indirect tax

Our tax money is spent on all of the following EXCEPT:

• Social Security

• The military

• Private Social Education

• National Parks

Which of the following is an example of a Capital expenditure?

• Construction of MPH

• Supply of medicine

• Repairing of classrooms

• Payment made to the labourers

............are the expenditures of the government for the maintenance of the existing infrastructures, to maintain law and order, defence, etc

• Developmental expenditures

• Capital expenditures

• Non- Developmental expenditures

• Current expenditures