objectives and classification of budget

“Free distribution of LPG connection to poor people is a sign of social justice”. Identify the Objective of Government Budget' from the above-mentioned statement.

• To promote economic growth.

• Allocation of resources for profit.

• To reduce inequality of Income.

• For economic stability.

The central government released over ₹8.28 lakh crore grants-in-aid to states between FY2019 and FY2023 based on recommendations of successive finance commissions.

if these grants are used by the state for purpose of creation of assets in the states such as roads, bridges flyovers etc, from the perspective of central government, under which category would you treat them.

• Revenue expenditure

• Revenue receipt

• Capital Exprenditure

• Capital receipt.

Reading the given news article , classify how would you treat the given expenditures in the news article

• Revenue receipt

• Capital receipt

• Revenue expenditure

• Capital expenditure.

Receipts from the images are classified as:

i)Customs, Recovery of loan, corporation tax, income tax- Revenue Receipt.

ii) Borrowings and other liabilities, Recovery of loan-Capital Receipt.

iii) Non tax revenue, Borrowings, Excise duty Recovery of loan-Capital Receipt

iv)Corporation Tax, GST, Income Tax, Customs-Revenue Receipt.

choose the correct alternative

• i,ii,iii,iv are correct

• only ii is correct

• ii and iv are correct

• only iv is correct.

Government expenditure on midday meal scheme running in government schools is a ……………. expenditure in government budget

(a)  

Govt looks at income tax rate cut to boost demand, trigger private investment

The tax cuts may be a more efficient measure to enhance disposable income, which in turn would result in higher consumption, and give a fillip to economic activities, the officials said.

Looking at the image and heading of the articles

Which objective do you think this , reduction in tax fulfils.

• Reduction in Income inequality

• Economic Stability

• Economic Growth

• Allocation of resources to overcome Market failure.

.‘Recovery of loans' is a receipt of which of the following nature (a)  

Read carefully and choose the correct alternative:

Statement1: Government Budget is a detailed economic statement presented by Finance Minister.                                                                                                  

Statement2: Government Budget consists of actual expenditure and receipt for the coming fiscal year.

Alternative:

(a) Both the statement are true

(b) Both the statement are false.

(c) Statement 1 is true and statement 2 is false

(d) Statement 2 is true and statement 1 is false

• Both the statement are true.

• Both the statement are false.

• Statement 1 is true and statement 2 is false

• Statement 2 is true and statement 1 is false

The responsibility of fiscal policy lies with:

The govt.

The Central Bank

The commercial banks

• The central govt.

• The Central Bank

• The commercial banks

• Both A&B

Government has a vast role to play in economy, Through changes in its expenditure and taxes, government fulfils various objectives. Match the following objectives and instrument.

i) Sin Tax on health hazardous substance

ii)subsidy on gas cylinder

iii) reduction in corporate Tax to increase investments .

iv) Reduction in government Expenditure.

a) Economic Growth

b) Reallocation of resources

c)to reduce inequality

d)economic stability

|

• i-a

  ii-c

  iii-a

  iv-d

• i-b

  ii-a

  iii-c

  iv-d

• i-b

  ii-c

  iii-a

  iv-d

• i-b

  ii-a

  iii-c

  iv-d