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Fiscal Responsibility: Unit 1 — Worksheet MCQs

Total questions: 124

Worksheet time: 1hrs 2mins

Name
Class
Date
1.

Fiscal responsibility mainly relates to

a)

Private finance management

b)

Government financial discipline

c)

Corporate accounting

d)

Banking regulation

2.

Fiscal responsibility aims at

a)

Unlimited public spending

b)

Long-term economic stability

c)

Short-term political gain

d)

Corporate profit

3.

Fiscal responsibility requires the government to

a)

Borrow without limits

b)

Balance revenue and expenditure

c)

Avoid taxation

d)

Ignore deficits

4.

Fiscal responsibility promotes

a)

Inflation

b)

Investor confidence

c)

Economic instability

d)

Excess borrowing

5.

Fiscal responsibility protects

a)

Only present generation

b)

Future generations from debt burden

c)

Political interests

d)

Corporate entities

6.

Transparency in fiscal responsibility means

a)

Secret budgeting

b)

Open disclosure of financial information

c)

Reduction of expenditure

d)

Elimination of audit

7.

Transparency improves

a)

Public trust

b)

Inflation rate

c)

Tax evasion

d)

Political dominance

8.

Transparency requires disclosure of

a)

Personal income of ministers

b)

Budget estimates

c)

Judicial decisions

d)

Election expenses

9.

Accountability in public finance means

a)

Government is answerable for public money

b)

Courts prepare the budget

c)

Citizens approve every expense

d)

Private audits only

10.

Accountability is enforced through

a)

Parliamentary questions

b)

Corporate audits

c)

Private agencies

d)

Media trials

11.

Accountability prevents

a)

Welfare schemes

b)

Corruption and wastage

c)

Budget preparation

d)

Tax collection

12.

A deficit occurs when

a)

Revenue exceeds expenditure

b)

Expenditure equals revenue

c)

Expenditure exceeds revenue

d)

Borrowing is zero

13.

Fiscal deficit represents

a)

Total borrowing requirement

b)

Revenue surplus

c)

Tax collection

d)

Capital receipts

14.

Revenue deficit occurs when

a)

Capital expenditure exceeds revenue

b)

Revenue expenditure exceeds revenue receipts

c)

Borrowing exceeds repayment

d)

Tax revenue increases

15.

Primary deficit is

a)

Fiscal deficit minus interest payments

b)

Revenue deficit plus borrowing

c)

Capital deficit

d)

Gross deficit

16.

Control of deficit helps to

a)

Increase inflation

b)

Maintain macroeconomic stability

c)

Increase subsidies

d)

Reduce accountability

17.

Public finance deals with

a)

Personal finance

b)

Corporate finance

c)

Government revenue and expenditure

d)

Banking finance

18.

Public finance includes

a)

Stock market operations

b)

Taxation and public expenditure

c)

Private investment

d)

Household savings

19.

Public finance ensures

a)

Private wealth accumulation

b)

Efficient use of public money

c)

Corporate monopoly

d)

Trade dominance

20.

According to Musgrave, public finance affects

a)

Resource allocation

b)

Stock prices

c)

Private savings

d)

Consumer behaviour only

21.

Public revenue includes

a)

Salaries

b)

Taxes and borrowings

c)

Expenditure

d)

Subsidies

22.

Public expenditure includes

a)

Defence spending

b)

Personal expenses

c)

Corporate investment

d)

Private loans

23.

Budgeting is part of

a)

Public finance

b)

Private accounting

c)

Corporate law

d)

Banking law

24.

The main treasury of the Government of India is

a)

Public Account

b)

Contingency Fund

c)

Consolidated Fund

d)

Reserve Bank

25.

The Consolidated Fund of India is provided under

a)

Article 112

b)

Article 148

c)

Article 266

d)

Article 280

26.

All government revenues are credited to

a)

Public Account

b)

Contingency Fund

c)

Consolidated Fund

d)

RBI account

27.

Loans raised by the government go into

a)

Public Account

b)

Contingency Fund

c)

Consolidated Fund

d)

Finance Commission

28.

Withdrawal from the Consolidated Fund requires

a)

Supreme Court approval

b)

Parliamentary approval

c)

CAG approval

d)

RBI approval

29.

Salaries of judges are paid from

a)

Public Account

b)

Contingency Fund

c)

Consolidated Fund

d)

Finance Commission grants

30.

Appropriation Act relates to

a)

Tax collection

b)

Withdrawal from Consolidated Fund

c)

Audit of accounts

d)

Emergency spending

31.

The Contingency Fund of India is established under

a)

Article 266

b)

Article 267

c)

Article 275

d)

Article 280

32.

The Contingency Fund is used for

a)

Regular expenditure

b)

Emergency expenditure

c)

Capital investment

d)

Loan repayment

33.

The Contingency Fund is placed at the disposal of

a)

Prime Minister

b)

Parliament

c)

President

d)

CAG

34.

Amount withdrawn from Contingency Fund must be

a)

Written off

b)

Restored later

c)

Ignored

d)

Transferred to States

35.

Each State also has

a)

Only Consolidated Fund

b)

Only Public Account

c)

Its own Contingency Fund

d)

No emergency fund

36.

A Money Bill can be introduced only in

a)

Rajya Sabha

b)

Lok Sabha

c)

State Assembly

d)

Supreme Court

37.

Budget is first presented in

a)

Rajya Sabha

b)

Lok Sabha

c)

President’s office

d)

Finance Commission

38.

Voting on demands for grants is done by

a)

Rajya Sabha

b)

Lok Sabha

c)

President

d)

CAG

39.

Appropriation Bill is passed by

a)

Rajya Sabha only

b)

Lok Sabha

c)

Supreme Court

d)

Finance Commission

40.

Rajya Sabha cannot

a)

Discuss Budget

b)

Recommend changes

c)

Amend Money Bill

d)

Debate financial matters

41.

If Rajya Sabha does not return a Money Bill, it is

a)

Rejected

b)

Amended

c)

Deemed passed

d)

Sent to court

42.

The President’s recommendation is required for

a)

Private Bills

b)

Money Bills

c)

Judicial Bills

d)

Constitutional amendments

43.

The Budget is presented in the name of

a)

Prime Minister

b)

Speaker

c)

President

d)

Finance Minister

44.

The President appoints the Finance Commission under

a)

Article 266

b)

Article 280

c)

Article 148

d)

Article 112

45.

The CAG is appointed under

a)

Article 148

b)

Article 149

c)

Article 150

d)

Article 151

46.

The CAG audits

a)

Private companies only

b)

Government accounts

c)

Personal income

d)

Election expenses

47.

Article 149 deals with

a)

Appointment of CAG

b)

Duties of CAG

c)

Removal of CAG

d)

Salary of CAG

48.

Article 151 relates to

a)

Budget

b)

Audit reports

c)

Tax distribution

d)

Emergency funds

49.

CAG acts as

a)

Policy maker

b)

Guardian of public purse

c)

Tax collector

d)

Budget presenter

50.

CAG ensures

a)

Political accountability

b)

Financial accountability

c)

Judicial accountability

d)

Media accountability

51.

Performance audit examines

a)

Legal validity only

b)

Efficiency of schemes

c)

Political outcomes

d)

Election promises

52.

Audit of receipts relates to

a)

Government spending

b)

Tax collection

c)

Loan repayment

d)

Salary payments

53.

CAG reports are examined by

a)

Supreme Court

b)

Public Accounts Committee

c)

Election Commission

d)

Finance Commission

54.

The Finance Commission is a

a)

Statutory body

b)

Constitutional body

c)

Executive body

d)

Judicial body

55.

Finance Commission is constituted every

a)

Two years

b)

Three years

c)

Five years

d)

Ten years

56.

Article 280 deals with

a)

GST Council

b)

Finance Commission

c)

CAG

d)

Budget

57.

Finance Commission consists of

a)

One member

b)

Two members

c)

Chairman and four members

d)

Ten members

58.

Finance Commission recommends

a)

Defence policy

b)

Tax distribution

c)

Judicial reforms

d)

Election laws

59.

Grants-in-aid to States are under

a)

Article 266

b)

Article 275

c)

Article 280

d)

Article 112

60.

Finance Commission strengthens

a)

Centralisation

b)

Cooperative federalism

c)

Judicial control

d)

Executive dominance

61.

Finance Commission recommendations are laid before

a)

Supreme Court

b)

Parliament

c)

CAG

d)

RBI

62.

Finance Commission also reviews

a)

Foreign policy

b)

Fiscal position of Union and States

c)

Defence preparedness

d)

Banking reforms

63.

Local bodies receive funds based on

a)

Election results

b)

Finance Commission recommendations

c)

Court orders

d)

RBI directions

64.

Disaster management grants are recommended by

a)

GST Council

b)

Finance Commission

c)

Planning Commission

d)

Election Commission

65.

The GST Council is a

a)

Statutory body

b)

Constitutional body

c)

Judicial body

d)

Private body

66.

GST Council is established under

a)

Article 246A

b)

Article 279A

c)

Article 280

d)

Article 266

67.

Chairperson of GST Council is

a)

Prime Minister

b)

President

c)

Union Finance Minister

d)

RBI Governor

68.

GST Council includes representatives of

a)

Judiciary

b)

Centre and States

c)

Private sector

d)

Public sector banks

69.

GST Council recommends

a)

Income tax rates

b)

GST rates and exemptions

c)

Customs procedures

d)

Monetary policy

70.

Fiscal responsibility encourages the government to

a)

Increase off-budget borrowing

b)

Spend within available resources

c)

Avoid welfare spending

d)

Ignore public debt

71.

Publishing CAG reports mainly supports

a)

Transparency

b)

Political stability

c)

Judicial review

d)

Executive secrecy

72.

The FRBM framework primarily aims at

a)

Judicial control of finance

b)

Fiscal discipline

c)

Tax exemption

d)

Corporate regulation

73.

Parliamentary control over finance reflects

a)

Executive supremacy

b)

Democratic accountability

c)

Judicial dominance

d)

Federal imbalance

74.

Sound fiscal responsibility results in

a)

Higher inflation

b)

Sustainable economic growth

c)

Increased deficits

d)

Revenue leakage

75.

Excessive borrowing by government leads to

a)

Fiscal surplus

b)

Higher interest burden

c)

Reduced debt

d)

Budget secrecy

76.

Article 112 of the Constitution relates to

a)

Consolidated Fund

b)

Annual Financial Statement

c)

Finance Commission

d)

Contingency Fund

77.

The Union Budget is also known as

a)

Finance Act

b)

Annual Financial Statement

c)

Money Bill

d)

Appropriation Act

78.

Article 113 deals with

a)

Money Bills

b)

Voting on demands for grants

c)

Contingency Fund

d)

GST Council

79.

Article 114 relates to

a)

Appropriation Bill

b)

Finance Commission

c)

CAG reports

d)

Tax sharing

80.

Article 110 defines

a)

Financial Bill

b)

Money Bill

c)

Constitutional Bill

d)

Ordinary Bill

81.

Rajya Sabha’s role in Money Bills is

a)

Absolute veto

b)

Advisory

c)

Equal to Lok Sabha

82.

Article 117 requires President’s recommendation for

a)

Ordinary Bills

b)

Financial Bills involving expenditure

c)

Private Bills

d)

Constitutional amendments

83.

Public Account of India mainly includes

a)

Tax revenues

b)

Loans and repayments

c)

Trust money and deposits

d)

Emergency funds

84.

Withdrawals from Public Account require

a)

Appropriation Act

b)

Parliamentary vote

c)

Executive authority

d)

Finance Commission approval

85.

Article 148 ensures

a)

Appointment of Finance Minister

b)

Independence of CAG

c)

Creation of GST Council

d)

Budget presentation

86.

Security of tenure of the CAG promotes

a)

Executive control

b)

Financial independence

c)

Political influence

d)

Budget secrecy

87.

Article 150 empowers the President to prescribe

a)

Tax rates

b)

Accounting format

c)

Budget size

d)

Audit procedure

88.

Article 151 ensures CAG reports are placed before

a)

Supreme Court

b)

Parliament or State Legislature

c)

Finance Commission

d)

GST Council

89.

Compliance audit mainly checks

a)

Policy efficiency

b)

Legal correctness of expenditure

c)

Economic outcomes

d)

Revenue forecasting

90.

Performance audit evaluates

a)

Whether law is violated

b)

Economy and efficiency of schemes

c)

Political impact

d)

Tax rates

91.

Audit objections raised by CAG promote

a)

Financial secrecy

b)

Corrective action

c)

Executive immunity

d)

Policy rigidity

92.

Vertical devolution refers to

a)

Sharing between States

b)

Sharing between Centre and States

c)

Sharing with local bodies

d)

Sharing with PSUs

93.

The Finance Commission Act, 1951 deals with

a)

Appointment of CAG

b)

Qualifications of Finance Commission members

c)

GST Council powers

d)

Budget preparation

94.

Horizontal devolution considers factors like

a)

Population and area

b)

Foreign trade

c)

Defence needs

d)

Monetary policy

95.

Income distance is used to

a)

Increase inequality

b)

Reduce regional imbalance

c)

Promote richer States

d)

Increase borrowing

96.

Article 275 empowers the Union to give

a)

Tax rebates

b)

Grants-in-aid to States

c)

Emergency loans

d)

Budget approvals

97.

Finance Commission grants to local bodies strengthen

a)

Centralisation

b)

Grass-root governance

c)

Judicial control

d)

Executive power

98.

Disaster management grants are linked with

a)

Income Tax Act

b)

Disaster Management Act

c)

FRBM Act

d)

GST Act

99.

Recommendations of Finance Commission are generally

a)

Mandatory by courts

b)

Binding on Parliament

c)

Advisory in nature

d)

Enforceable by CAG

100.

GST Council was created by

a)

101st Constitutional Amendment

b)

73rd Amendment

c)

44th Amendment

d)

86th Amendment

101.

Article 279A provides for

a)

Finance Commission

b)

GST Council

c)

CAG

d)

Public Account

102.

GST Council promotes

a)

Multiple tax regimes

b)

Uniform indirect taxation

c)

State-specific GST

d)

Tax secrecy

103.

Decisions of GST Council are taken by

a)

Simple majority

b)

Weighted voting system

c)

President’s discretion

d)

Judicial review

104.

One-nation-one-tax concept is associated with

a)

Income Tax

b)

GST

c)

Customs duty

d)

Property tax

105.

GST subsumed which of the following

a)

Income tax

b)

VAT

c)

Property tax

d)

Stamp duty

106.

Fiscal discipline improves

a)

Credit rating of a country

b)

Political instability

c)

Inflation volatility

d)

Revenue leakage

107.

Excessive revenue deficit affects

a)

Capital investment

b)

Day-to-day administration

c)

Judicial independence

d)

Federal structure

108.

Parliamentary approval for expenditure ensures

a)

Executive dominance

b)

Legislative oversight

c)

Judicial supremacy

d)

Administrative secrecy

109.

Appropriation Bill authorises

a)

Tax imposition

b)

Expenditure from Consolidated Fund

c)

Audit of accounts

d)

Emergency borrowing

110.

Finance Bill mainly deals with

a)

Grants

b)

Tax proposals

c)

Audit reports

d)

Budget estimates

111.

CAG does not perform

a)

Financial audit

b)

Compliance audit

c)

Policy making

d)

Performance audit

112.

Public Accounts Committee is a committee of

a)

Judiciary

b)

Parliament

c)

Executive

d)

Finance Commission

113.

Fiscal responsibility reduces burden on

a)

Only government

b)

Future generations

c)

Corporations

d)

Banks

114.

Sustainable public finance ensures

a)

Long-term fiscal health

b)

Unlimited spending

c)

High deficits

d)

Budget opacity

115.

Off-budget borrowing violates the principle of

a)

Accountability

b)

Transparency

c)

Federalism

d)

Separation of powers

116.

Parliamentary questions enhance

a)

Financial secrecy

b)

Executive accountability

c)

Judicial control

d)

Policy rigidity

117.

Democratic control over finance is exercised mainly by

a)

Judiciary

b)

Legislature

c)

Executive

d)

RBI

118.

Fiscal responsibility laws aim to prevent

a)

Revenue collection

b)

Fiscal indiscipline

c)

Budget preparation

d)

Welfare spending

119.

Sound public finance strengthens

a)

Investor confidence

b)

Inflation

c)

Revenue deficit

d)

Debt accumulation

120.

Borrowing for productive purposes supports

a)

Fiscal sustainability

b)

Fiscal indiscipline

c)

Revenue deficit

d)

Inflation

121.

Excessive interest payments increase

a)

Primary deficit

b)

Revenue surplus

c)

Fiscal surplus

d)

Capital receipts

122.

Transparent budgeting improves

a)

Public trust

b)

Executive secrecy

c)

Tax evasion

d)

Inflation

123.

Financial accountability is a core element of

(a)  

124.

Fiscal responsibility ensures

a)

Economic stability

b)

Unlimited borrowing

c)

Persistent deficits

d)

Revenue erosion

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