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Government Budget and components

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

Which of the following are objectives of budget?

a)

Reallocation of resources

b)

Redistribution of income

c)

Economic stability

d)

All of these

2.

Which of the following is not non tax revenue receipts of government?

a)

Excise duty

b)

Escheat

c)

Special assessment

d)

Fees and fines

3.

Primary deficit=fiscal deficit_

a)

Loan

b)

Interest payments

c)

Borrowings

d)

None of these

4.

When budget receipts are greater than budget expenditure such type of budget is called:

a)

Balanced budget

b)

Deficit budget

c)

Surplus budget

d)

None of these

5.

Construction of school building is:

a)

Capital expenditure

b)

Revenue receipts

c)

Revenue expenditure

d)

Capital receipts

6.

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

a)

The producers on goods produced

b)

the sellers on goods sold

c)

The buyers of goods

d)

The income earners

7.

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

a)

1st January to 31st December

b)

1st April to 31st December

c)

1st April to 31st March

d)

1st January to 30th April

8.

In the government budget, if revenue receipts = ₹100 lakh, capital receipt = ₹50 lakh and revenue deficit = ₹25 lakh, how much is the revenue expenditure?

a)

75 lakh

b)

150 lakh

c)

125 lakh

d)

50 lakh

9.

Pension payment is an example of :

a)

Plan expenditure

b)

Revenue expenditure

c)

Capital expenditure

d)

Non-plan expenditure

10.

Which of the following statement is true?

a)

Loan from IMF is a Revenue Receipt

b)

Higher revenue deficit necessarily leads to higher fiscal deficit

c)

Borrowing by a government represents a situation of fiscal deficit.

d)

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

11.

In government, budget primary deficit is ₹10000 crore, interest payment is ₹5000 crore, then fiscal deficit is ₹ _______ crore.

a)

15000

b)

16000

c)

18000

d)

5000

12.

Which of the following is a non tax eceipts?

a)

Gift tax

b)

sale tax

c)

Donations

d)

Excise duty

13.

In which of the following ways , can deficit in budget be financed?

a)

Borrowings from RBI

b)

Borrowing from public

c)

Borrowing from IMF

d)

all of the above

14.

Expenditure on old age pension is an example of revenue expenditure

a)

True

b)

False

15.

If the increase in income leads to a reduction in the tax rate, such type of tax system are know as

a)

Regressive

b)

Progressive

c)

None of these

16.

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

a)

they create assets

b)

they create liability

c)

they reduce assets

d)

they reduce assets and (or) create liability

17.

Primary Deficit is a part of

a)

Revenue deficit

b)

Fiscal Deficit

c)

Borrowings

d)

Interest payments

18.

The focus off government budget is to:

a)

maximise fiscal deficit

b)

minimise fiscal deficit

c)

to maximise expenditure

d)

to minimise revenue

19.

A tax is said to be ____________ when it causes a greater burden on the poor than the rich

a)

Progressive

b)

Regressive

20.

This expenditure creates assets for the government.

(a)