{"id":13381,"date":"2025-09-30T10:48:14","date_gmt":"2025-09-30T09:48:14","guid":{"rendered":"https:\/\/mcqsadda.com\/?p=13381"},"modified":"2025-10-24T05:41:44","modified_gmt":"2025-10-24T04:41:44","slug":"budget-top-100-mcqs-with-answer-and-explanation","status":"publish","type":"post","link":"https:\/\/mcqsadda.com\/index.php\/2025\/09\/30\/budget-top-100-mcqs-with-answer-and-explanation\/","title":{"rendered":"Budget\u00a0Top 100 MCQs With Answer and Explanation"},"content":{"rendered":"\n

1. A government budget is:<\/mark><\/strong>
A) An account of imports and exports
B) An annual statement of estimated revenue and expenditure
C) A monetary policy statement
D) A credit policy of banks
Answer: B<\/strong>
Explanation:<\/strong> Budget = annual financial statement<\/strong> of expected revenues and expenditures.<\/p>\n\n\n\n

2. In India, the Union Budget is presented by:<\/mark><\/strong>
A) Prime Minister
B) Finance Minister
C) President
D) RBI Governor
Answer: B<\/strong>
Explanation:<\/strong> Union Budget is presented by the Finance Minister<\/strong> in Parliament.<\/p>\n\n\n\n

3. As per the Constitution, Union Budget is referred to as:<\/mark><\/strong>
A) Financial Bill
B) Money Bill
C) Annual Financial Statement
D) Fiscal Responsibility Report
Answer: C<\/strong>
Explanation:<\/strong> Article 112 of Indian Constitution \u2192 Annual Financial Statement<\/strong>.<\/p>\n\n\n\n

4. Budget is presented in which House of Parliament?<\/mark><\/strong>
A) Rajya Sabha only
B) Lok Sabha only
C) Both Houses simultaneously
D) Joint Session
Answer: C<\/strong>
Explanation:<\/strong> Presented in Lok Sabha first<\/strong>, later discussed in Rajya Sabha (no voting power there).<\/p>\n\n\n\n

5. The Union Budget in India is presented usually on:<\/mark><\/strong>
A) 31st March
B) 1st April
C) Last working day of February
D) 1st February
Answer: D<\/strong>
Explanation:<\/strong> Since 2017, Budget is presented on 1st February<\/strong>.<\/p>\n\n\n\n

6. Who prepares the Union Budget in India?<\/mark><\/strong>
A) NITI Aayog
B) Finance Ministry
C) RBI
D) CAG
Answer: B<\/strong>
Explanation:<\/strong> Ministry of Finance<\/strong> (Department of Economic Affairs) prepares the Budget.<\/p>\n\n\n\n

7. The budgetary year in India runs from:<\/mark><\/strong>
A) Jan\u2013Dec
B) April\u2013March
C) July\u2013June
D) Oct\u2013Sept
Answer: B<\/strong>
Explanation:<\/strong> India follows April 1 to March 31<\/strong> as financial year.<\/p>\n\n\n\n

8. Which of the following is NOT a function of budget?<\/mark><\/strong>
A) Allocating resources
B) Reducing inequality
C) Maintaining foreign exchange rate
D) Stabilizing economy
Answer: C<\/strong>
Explanation:<\/strong> Exchange rate is managed by RBI<\/strong>, not directly through budget.<\/p>\n\n\n\n

9. A surplus budget means:<\/mark><\/strong>
A) Revenue > Expenditure
B) Revenue < Expenditure
C) Revenue = Expenditure
D) Only capital receipts shown
Answer: A<\/strong>
Explanation:<\/strong> Surplus budget \u2192 government earns more than spends<\/strong>.<\/p>\n\n\n\n

10. A deficit budget means:<\/mark><\/strong>
A) Revenue = Expenditure
B) Revenue > Expenditure
C) Revenue < Expenditure
D) Capital expenditure only
Answer: C<\/strong>
Explanation:<\/strong> Deficit = expenditure exceeds receipts<\/strong>.<\/p>\n\n\n\n

11. A balanced budget means:<\/mark><\/strong>
A) Receipts = Expenditure
B) Receipts > Expenditure
C) Receipts < Expenditure
D) Expenditure excluded
Answer: A<\/strong>
Explanation:<\/strong> Balanced budget = expenditure equals receipts<\/strong>.<\/p>\n\n\n\n

12. Which of the following is NOT a type of budget?<\/mark><\/strong>
A) Surplus
B) Deficit
C) Balanced
D) Monetary
Answer: D<\/strong>
Explanation:<\/strong> Monetary policy is RBI\u2019s domain, not a type of budget.<\/p>\n\n\n\n

13. Which Article of the Indian Constitution deals with Annual Financial Statement (Budget)?<\/mark><\/strong>
A) Article 110
B) Article 112
C) Article 265
D) Article 148
Answer: B<\/strong>
Explanation:<\/strong> Article 112<\/strong> \u2192 Annual Financial Statement.<\/p>\n\n\n\n

14. Railway Budget was merged with Union Budget in:<\/mark><\/strong>
A) 2015
B) 2017
C) 2018
D) 2016
Answer: B<\/strong>
Explanation:<\/strong> Since 2017\u201318<\/strong>, Railway Budget merged with Union Budget.<\/p>\n\n\n\n

15. The responsibility of auditing government accounts lies with:<\/mark><\/strong>
A) RBI
B) SEBI
C) CAG
D) Finance Commission
Answer: C<\/strong>
Explanation:<\/strong> Comptroller and Auditor General (CAG)<\/strong> audits govt accounts.<\/p>\n\n\n\n

16. A Finance Bill is:<\/mark><\/strong>
A) A bill to authorize government expenditure
B) A bill to give effect to financial proposals of Budget
C) A money bill unrelated to budget
D) A bill passed by Rajya Sabha only
Answer: B<\/strong>
Explanation:<\/strong> Finance Bill \u2192 gives legal effect<\/strong> to taxation & budget proposals.<\/p>\n\n\n\n

17. Which is NOT a revenue receipt in budget?<\/mark><\/strong>
A) Tax revenue
B) Non-tax revenue
C) Borrowings
D) Interest receipts
Answer: C<\/strong>
Explanation:<\/strong> Borrowings = capital receipt<\/strong>, not revenue.<\/p>\n\n\n\n

18. Fiscal deficit in budget represents:<\/mark><\/strong>
A) Total borrowings of government
B) Excess of expenditure over receipts excluding borrowings
C) Excess of revenue expenditure over revenue receipts
D) Excess of capital expenditure over capital receipts
Answer: B<\/strong>
Explanation:<\/strong> Fiscal deficit = expenditure \u2013 (revenue + non-debt receipts)<\/strong>.<\/p>\n\n\n\n

19. Primary deficit is:<\/mark><\/strong>
A) Fiscal deficit \u2013 Interest payments
B) Revenue deficit \u2013 Capital expenditure
C) Borrowings \u2013 Expenditure
D) Expenditure \u2013 Borrowings
Answer: A<\/strong>
Explanation:<\/strong> Primary deficit = Fiscal deficit \u2013 Interest payments.<\/p>\n\n\n\n

20. Revenue deficit is:<\/mark><\/strong>
A) Revenue expenditure \u2013 Revenue receipts
B) Revenue receipts \u2013 Revenue expenditure
C) Capital expenditure \u2013 Capital receipts
D) Total expenditure \u2013 Revenue receipts
Answer: A<\/strong>
Explanation:<\/strong> Revenue deficit arises when revenue expenditure > revenue receipts<\/strong>.<\/p>\n\n\n\n

21. Effective revenue deficit =<\/mark><\/strong>
A) Revenue deficit \u2013 Grants for capital creation
B) Fiscal deficit \u2013 Borrowings
C) Capital receipts \u2013 Capital expenditure
D) Primary deficit \u2013 Interest payments
Answer: A<\/strong>
Explanation:<\/strong> Introduced in 2012 \u2192 ERD = Revenue deficit \u2013 Grants for capital assets.<\/p>\n\n\n\n

22. Zero-based budgeting means:<\/mark><\/strong>
A) Budget starts from zero every year
B) Budget without deficit
C) Budget without borrowings
D) Budget of zero receipts
Answer: A<\/strong>
Explanation:<\/strong> In ZBB<\/strong>, each expense must be justified afresh, starting from zero.<\/p>\n\n\n\n

23. Gender budgeting refers to:<\/mark><\/strong>
A) Budget for women employees only
B) Gender-based taxation
C) Integrating gender perspective into budget allocation
D) Separate women\u2019s budget
Answer: C<\/strong>
Explanation:<\/strong> Gender budgeting = ensuring gender equality in policy allocation<\/strong>.<\/p>\n\n\n\n

24. Outcome budgeting emphasizes:<\/mark><\/strong>
A) Inputs only
B) Financial planning only
C) Results and outcomes of expenditure
D) Borrowings management
Answer: C<\/strong>
Explanation:<\/strong> Outcome budgeting focuses on performance\/results<\/strong> of govt spending.<\/p>\n\n\n\n

25. The first budget of independent India was presented by:<\/mark><\/strong>
A) R.K. Shanmukham Chetty
B) John Mathai
C) C.D. Deshmukh
D) Morarji Desai
Answer: A<\/strong>
Explanation:<\/strong> R.K. Shanmukham Chetty<\/strong> presented first Union Budget on 26th Nov, 1947<\/strong>.<\/p>\n\n\n\n

26. The two main components of a government budget are:<\/mark><\/strong>
A) Receipts and Payments
B) Revenue and Expenditure
C) Revenue Budget and Capital Budget
D) Fiscal and Monetary
Answer: C<\/strong>
Explanation:<\/strong> Union Budget = Revenue Budget + Capital Budget<\/strong>.<\/p>\n\n\n\n

27. Revenue receipts include:<\/mark><\/strong>
A) Taxes and non-tax revenues
B) Borrowings
C) Disinvestment
D) Recovery of loans
Answer: A<\/strong>
Explanation:<\/strong> Revenue receipts = tax + non-tax income<\/strong> (not creating liabilities).<\/p>\n\n\n\n

28. Capital receipts include:<\/mark><\/strong>
A) Taxes
B) Non-tax revenue
C) Borrowings and disinvestment
D) Interest receipts
Answer: C<\/strong>
Explanation:<\/strong> Capital receipts = those creating liabilities or reducing assets<\/strong>.<\/p>\n\n\n\n

29. Which of the following is NOT a revenue receipt?<\/mark><\/strong>
A) Corporate tax
B) Dividends from PSUs
C) Borrowings
D) Customs duty
Answer: C<\/strong>
Explanation:<\/strong> Borrowings are capital receipts<\/strong>, not revenue.<\/p>\n\n\n\n

30. Which of the following is NOT a capital receipt?<\/mark><\/strong>
A) Market borrowings
B) Disinvestment proceeds
C) Recovery of loans
D) Income tax
Answer: D<\/strong>
Explanation:<\/strong> Income tax is a revenue receipt<\/strong>.<\/p>\n\n\n\n

31. Revenue expenditure includes:<\/mark><\/strong>
A) Salaries, subsidies, interest payments
B) Investment in infrastructure
C) Loan repayments
D) Acquisition of assets
Answer: A<\/strong>
Explanation:<\/strong> Revenue expenditure = recurring expenses, not creating assets<\/strong>.<\/p>\n\n\n\n

32. Capital expenditure includes:<\/mark><\/strong>
A) Salaries and pensions
B) Construction of roads, dams, schools
C) Subsidies
D) Grants to states for maintenance
Answer: B<\/strong>
Explanation:<\/strong> Capital expenditure = asset creation<\/strong> or reduction of liabilities.<\/p>\n\n\n\n

33. Which of the following is an example of non-tax revenue?<\/mark><\/strong>
A) Excise duty
B) Dividends from PSUs
C) Income tax
D) Customs duty
Answer: B<\/strong>
Explanation:<\/strong> Non-tax revenue includes dividends, fees, interest, fines<\/strong>.<\/p>\n\n\n\n

34. Which tax is the largest source of revenue for Government of India?<\/mark><\/strong>
A) Income tax
B) Corporate tax
C) GST
D) Customs duty
Answer: C<\/strong>
Explanation:<\/strong> Currently, GST is the largest revenue source<\/strong>.<\/p>\n\n\n\n

35. Which of the following is a direct tax?<\/mark><\/strong>
A) GST
B) Customs duty
C) Income tax
D) Excise duty
Answer: C<\/strong>
Explanation:<\/strong> Direct tax = paid directly by individuals\/firms (e.g., income tax).<\/p>\n\n\n\n

36. Which of the following is an indirect tax?<\/mark><\/strong>
<\/mark>A) Income tax
B) Corporate tax
C) GST
D) Wealth tax
Answer: C<\/strong>
Explanation:<\/strong> GST is collected indirectly via goods\/services.<\/p>\n\n\n\n

37. Revenue deficit indicates:<\/mark><\/strong>
A) Govt unable to meet capital expenditure
B) Govt unable to meet revenue expenditure from revenue receipts
C) Govt unable to borrow funds
D) Govt spends more on defence
Answer: B<\/strong>
Explanation:<\/strong> Revenue deficit = Revenue expenditure \u2013 Revenue receipts<\/strong>.<\/p>\n\n\n\n

38. Fiscal deficit shows:<\/mark><\/strong>
A) Total borrowings of government
B) Excess of expenditure over receipts excluding borrowings
C) Excess of revenue receipts over expenditure
D) Excess of imports over exports
Answer: B<\/strong>
Explanation:<\/strong> Fiscal deficit = expenditure \u2013 (revenue + non-debt receipts)<\/strong>.<\/p>\n\n\n\n

39. Primary deficit =<\/mark><\/strong>
A) Fiscal deficit \u2013 Revenue deficit
B) Fiscal deficit \u2013 Interest payments
C) Revenue deficit \u2013 Grants
D) Fiscal deficit + Borrowings
Answer: B<\/strong>
Explanation:<\/strong> Primary deficit excludes interest payments<\/strong>.<\/p>\n\n\n\n

40. Effective revenue deficit =<\/mark><\/strong>
A) Revenue deficit \u2013 Grants for capital creation
B) Fiscal deficit \u2013 Borrowings
C) Capital expenditure \u2013 Revenue receipts
D) Fiscal deficit \u2013 Subsidies
Answer: A<\/strong>
Explanation:<\/strong> Introduced in 2012\u201313 \u2192 subtracts capital grants from revenue deficit.<\/p>\n\n\n\n

41. In India, disinvestment proceeds are treated as:<\/mark><\/strong>
A) Revenue receipts
B) Capital receipts
C) Revenue expenditure
D) Revenue deficit
Answer: B<\/strong>
Explanation:<\/strong> Disinvestment = capital receipt<\/strong> (reduces govt asset holding).<\/p>\n\n\n\n

42. Interest payments by government are classified as:<\/mark><\/strong>
A) Capital expenditure
B) Revenue expenditure
C) Capital receipts
D) Revenue receipts
Answer: B<\/strong>
Explanation:<\/strong> Interest = recurring liability<\/strong> \u2192 revenue expenditure.<\/p>\n\n\n\n

43. Which of the following is NOT part of revenue expenditure?<\/mark><\/strong>
A) Subsidies
B) Pensions
C) Construction of highways
D) Salaries
Answer: C<\/strong>
Explanation:<\/strong> Highways = capital expenditure<\/strong>.<\/p>\n\n\n\n

44. Grants given by Union Government to states for creation of capital assets are:<\/mark><\/strong>
A) Revenue expenditure
B) Capital expenditure
C) Revenue receipts
D) Capital receipts
Answer: B<\/strong>
Explanation:<\/strong> Grants for asset creation = capital expenditure<\/strong>.<\/p>\n\n\n\n

45. Which of the following is included in capital receipts?<\/mark><\/strong>
A) Taxes
B) Borrowings
C) Dividends
D) Interest on loans
Answer: B<\/strong>
Explanation:<\/strong> Borrowings = capital receipts (liabilities).<\/p>\n\n\n\n

46. A higher revenue deficit indicates:<\/mark><\/strong>
A) Govt is overspending on capital projects
B) Govt is overspending on current consumption
C) Govt is borrowing more for asset creation
D) Govt has zero deficit
Answer: B<\/strong>
Explanation:<\/strong> Revenue deficit = excess of current consumption expenditure<\/strong>.<\/p>\n\n\n\n

47. Borrowings are shown in budget as:<\/mark><\/strong>
A) Revenue receipts
B) Revenue expenditure
C) Capital receipts
D) Revenue deficit
Answer: C<\/strong>
Explanation:<\/strong> Borrowings = capital receipts<\/strong> (create liability).<\/p>\n\n\n\n

48. Tax revenue is classified into:<\/mark><\/strong>
A) Direct and Indirect taxes
B) Revenue and Capital taxes
C) Local and National taxes
D) Planned and Unplanned taxes
Answer: A<\/strong>
Explanation:<\/strong> Tax revenue = direct + indirect<\/strong> taxes.<\/p>\n\n\n\n

49. Corporate tax is levied on:<\/mark><\/strong>
A) Salaried employees
B) Profits of companies
C) Partnership firms
D) Importers
Answer: B<\/strong>
Explanation:<\/strong> Corporate tax = profits of companies<\/strong>.<\/p>\n\n\n\n

50. The share of GST in total tax revenue of India is roughly:<\/mark><\/strong>
A) 10\u201315%
B) 20\u201325%
C) 40\u201345%
D) 55\u201360%
Answer: C<\/strong>
Explanation:<\/strong> GST contributes around 40\u201345%<\/strong> of tax revenue (varies yearly).<\/p>\n\n\n\n

51. Which of the following is NOT a type of government budget?<\/mark><\/strong>
A) Surplus Budget
B) Balanced Budget
C) Deficit Budget
D) Credit Budget
Answer: D<\/strong>
Explanation:<\/strong> Surplus, deficit, and balanced are standard types; \u201ccredit budget\u201d is not.<\/p>\n\n\n\n

52. A surplus budget is generally recommended during:<\/mark><\/strong>
A) Recession
B) Inflation
C) Depression
D) Low employment
Answer: B<\/strong>
Explanation:<\/strong> Surplus budget reduces demand \u2192 controls inflation<\/strong>.<\/p>\n\n\n\n

53. A deficit budget is generally recommended during:<\/mark><\/strong>
A) Inflation
B) Boom
C) Depression or slowdown
D) Balance of payments surplus
Answer: C<\/strong>
Explanation:<\/strong> Deficit budget boosts demand \u2192 useful during depression\/slowdown<\/strong>.<\/p>\n\n\n\n

54. A balanced budget is when:<\/mark><\/strong>
A) Revenue = Expenditure
B) Revenue > Expenditure
C) Revenue < Expenditure
D) Revenue excludes borrowings
Answer: A<\/strong>
Explanation:<\/strong> Balanced = expenditure = receipts<\/strong>.<\/p>\n\n\n\n

55. Which type of budget is rarely used in modern economies?<\/mark><\/strong>
A) Surplus
B) Deficit
C) Balanced
D) Gender
Answer: C<\/strong>
Explanation:<\/strong> Balanced budgets are impractical \u2192 most countries use deficit financing<\/strong>.<\/p>\n\n\n\n

56. Deficit financing means:<\/mark><\/strong>
A) Government borrows from public
B) Government prints new currency
C) Government cuts expenditure
D) Government raises direct taxes
Answer: B<\/strong>
Explanation:<\/strong> Deficit financing = meeting deficit by printing new currency<\/strong>.<\/p>\n\n\n\n

57. Fiscal deficit means:<\/strong>
<\/mark>A) Total borrowings
B) Revenue expenditure \u2013 Revenue receipts
C) Total expenditure \u2013 (Revenue receipts + Non-debt receipts)
D) Revenue deficit + Capital deficit
Answer: C<\/strong>
Explanation:<\/strong> Fiscal deficit = expenditure \u2013 (revenue + non-debt receipts)<\/strong>.<\/p>\n\n\n\n

58. Revenue deficit means:<\/mark><\/strong>
A) Revenue expenditure \u2013 Revenue receipts
B) Capital expenditure \u2013 Capital receipts
C) Fiscal deficit \u2013 Primary deficit
D) Borrowings \u2013 Interest payments
Answer: A<\/strong>
Explanation:<\/strong> When revenue expenditure > revenue receipts.<\/p>\n\n\n\n

59. Primary deficit =<\/mark><\/strong>
A) Fiscal deficit \u2013 Interest payments
B) Revenue deficit \u2013 Subsidies
C) Fiscal deficit \u2013 Borrowings
D) Fiscal deficit + Grants
Answer: A<\/strong>
Explanation:<\/strong> Primary deficit excludes interest burden<\/strong>.<\/p>\n\n\n\n

60. Effective revenue deficit =<\/mark><\/strong>
A) Revenue deficit \u2013 Capital grants to states
B) Fiscal deficit \u2013 Subsidies
C) Primary deficit \u2013 Borrowings
D) Revenue receipts \u2013 Borrowings
Answer: A<\/strong>
Explanation:<\/strong> ERD = Revenue deficit \u2013 grants for asset creation.<\/p>\n\n\n\n

61. Monetized deficit refers to:<\/mark><\/strong>
A) Borrowings from foreign banks
B) Borrowings from commercial banks
C) Borrowings from RBI (currency printing)
D) Borrowings from IMF
Answer: C<\/strong>
Explanation:<\/strong> Monetized deficit = financing deficit by RBI printing money<\/strong>.<\/p>\n\n\n\n

62. Budgetary deficit means:<\/mark><\/strong>
A) Total expenditure > Total receipts (including borrowings)
B) Total expenditure > Total receipts (excluding borrowings)
C) Fiscal deficit \u2013 Interest payments
D) Capital deficit \u2013 Revenue deficit
Answer: A<\/strong>
Explanation:<\/strong> Budgetary deficit is broader but now replaced by fiscal deficit<\/strong> as official measure.<\/p>\n\n\n\n

63. Zero-based budgeting (ZBB) was first introduced in India in:<\/mark><\/strong>
A) 1960
B) 1980s
C) 1990s
D) 2000s
Answer: B<\/strong>
Explanation:<\/strong> ZBB introduced in India in 1980s (7th Plan)<\/strong>.<\/p>\n\n\n\n

64. Gender budgeting was introduced in India in:<\/mark><\/strong>
A) 2000\u201301
B) 2003\u201304
C) 2005\u201306
D) 2008\u201309
Answer: B<\/strong>
Explanation:<\/strong> First gender budget statement in 2003\u201304<\/strong> Union Budget.<\/p>\n\n\n\n

65. Outcome budgeting was introduced in India in:<\/mark><\/strong>
A) 2000\u201301
B) 2002\u201303
C) 2005\u201306
D) 2007\u201308
Answer: C<\/strong>
Explanation:<\/strong> Outcome budgeting introduced in 2005\u201306<\/strong> to link spending with results.<\/p>\n\n\n\n

66. Which of the following deficits indicates borrowing requirement of govt?<\/mark><\/strong>
A) Revenue deficit
B) Fiscal deficit
C) Primary deficit
D) Effective revenue deficit
Answer: B<\/strong>
Explanation:<\/strong> Fiscal deficit = total borrowing requirement<\/strong> of govt.<\/p>\n\n\n\n

67. If fiscal deficit is \u20b910,000 crore and interest payments are \u20b94,000 crore, primary deficit =<\/mark><\/strong>
A) \u20b96,000 crore
B) \u20b910,000 crore
C) \u20b914,000 crore
D) \u20b94,000 crore
Answer: A<\/strong>
Explanation:<\/strong> Primary deficit = Fiscal deficit \u2013 Interest = 10,000 \u2013 4,000 = \u20b96,000 crore.<\/p>\n\n\n\n

68. A situation where revenue deficit = 0 but fiscal deficit > 0 implies:<\/mark><\/strong>
A) Govt is borrowing only for asset creation
B) Govt is overspending on revenue expenditure
C) Govt is printing money
D) Govt has balanced budget
Answer: A<\/strong>
Explanation:<\/strong> No revenue deficit \u2192 borrowings used for capital expenditure<\/strong>.<\/p>\n\n\n\n

69. If fiscal deficit is fully financed by borrowing from RBI, it is called:<\/mark><\/strong>
A) Revenue deficit
B) Primary deficit
C) Monetized deficit
D) Budgetary deficit
Answer: C<\/strong>
Explanation:<\/strong> RBI prints new currency to finance \u2192 monetized deficit.<\/p>\n\n\n\n

70. Which deficit was removed from official usage in India after 1997?<\/mark><\/strong>
A) Fiscal deficit
B) Budgetary deficit
C) Primary deficit
D) Effective revenue deficit
Answer: B<\/strong>
Explanation:<\/strong> Budgetary deficit<\/strong> is no longer used officially.<\/p>\n\n\n\n

71. The FRBM Act (2003) mainly targets which deficit?<\/mark><\/strong>
A) Revenue deficit
B) Fiscal deficit
C) Primary deficit
D) Monetized deficit
Answer: B<\/strong>
Explanation:<\/strong> FRBM Act aims at reducing fiscal deficit & revenue deficit<\/strong>.<\/p>\n\n\n\n

72. The fiscal deficit target under FRBM was originally set at:<\/mark><\/strong>
A) 3% of GDP
B) 4% of GDP
C) 2% of GDP
D) 5% of GDP
Answer: A<\/strong>
Explanation:<\/strong> Target = 3% of GDP<\/strong>.<\/p>\n\n\n\n

73. Primary deficit is useful to measure:<\/mark><\/strong>
A) Govt\u2019s total borrowing
B) Fiscal health excluding interest payments
C) Effective capital expenditure
D) Current account balance
Answer: B<\/strong>
Explanation:<\/strong> Shows deficit due to current spending<\/strong>, excluding interest burden.<\/p>\n\n\n\n

74. High revenue deficit indicates:<\/mark><\/strong>
A) Govt is borrowing to fund consumption expenditure
B) Govt is borrowing only for investment
C) Govt has a surplus
D) Govt has no fiscal deficit
Answer: A<\/strong>
Explanation:<\/strong> Borrowing for consumption is unsustainable \u2192 high revenue deficit.<\/p>\n\n\n\n

75. Which deficit concept is most relevant for assessing inflationary impact?<\/mark><\/strong>
A) Fiscal deficit
B) Revenue deficit
C) Budgetary deficit
D) Effective revenue deficit
Answer: A<\/strong>
Explanation:<\/strong> Fiscal deficit<\/strong> reflects total borrowing \u2192 affects money supply & inflation.<\/p>\n\n\n\n

76. The Union Budget is also known as:<\/mark><\/strong>
A) Annual Economic Survey
B) Annual Financial Statement
C) Finance Bill
D) Fiscal Responsibility Report
Answer: B<\/strong>
Explanation:<\/strong> Article 112 of the Constitution calls the Union Budget the Annual Financial Statement<\/strong>.<\/p>\n\n\n\n

77. In India, the Union Budget is presented before Parliament by:<\/mark><\/strong>
A) Prime Minister
B) Finance Minister
C) President
D) RBI Governor
Answer: B<\/strong>
Explanation:<\/strong> The Finance Minister<\/strong> presents the Union Budget in Lok Sabha.<\/p>\n\n\n\n

78. Who presented the first Union Budget of Independent India in 1947?<\/mark><\/strong>
A) Morarji Desai
B) R.K. Shanmukham Chetty
C) John Mathai
D) C.D. Deshmukh
Answer: B<\/strong>
Explanation:<\/strong> R.K. Shanmukham Chetty presented the first budget<\/strong> on 26 Nov 1947.<\/p>\n\n\n\n

79. The Railway Budget was merged with the Union Budget in:<\/mark><\/strong>
A) 2014\u201315
B) 2015\u201316
C) 2017\u201318
D) 2018\u201319
Answer: C<\/strong>
Explanation:<\/strong> From 2017\u201318<\/strong>, a unified budget was presented.<\/p>\n\n\n\n

80. Since 2017, the Union Budget is presented on:<\/mark><\/strong>
A) 31st March
B) 1st April
C) 1st February
D) 15th March
Answer: C<\/strong>
Explanation:<\/strong> To ensure earlier fund allocation, budget date shifted to 1st February<\/strong>.<\/p>\n\n\n\n

81. Economic Survey is presented:<\/mark><\/strong>
A) Before the Union Budget
B) After the Union Budget
C) Along with the Union Budget
D) Only in Rajya Sabha
Answer: A<\/strong>
Explanation:<\/strong> Economic Survey is presented one day before Budget<\/strong>.<\/p>\n\n\n\n

82. Which institution audits government accounts in India?<\/mark><\/strong>
A) RBI
B) Finance Commission
C) CAG
D) SEBI
Answer: C<\/strong>
Explanation:<\/strong> Comptroller and Auditor General (CAG)<\/strong> audits government expenditure.<\/p>\n\n\n\n

83. Fiscal Responsibility and Budget Management (FRBM) Act was passed in:<\/mark><\/strong>
A) 1991
B) 1995
C) 2000
D) 2003
Answer: D<\/strong>
Explanation:<\/strong> FRBM Act, 2003<\/strong> \u2192 targets fiscal discipline.<\/p>\n\n\n\n

84. FRBM Act initially targeted fiscal deficit of:<\/mark><\/strong>
A) 2% of GDP
B) 3% of GDP
C) 4% of GDP
D) 5% of GDP
Answer: B<\/strong>
Explanation:<\/strong> Fiscal deficit target = 3% of GDP<\/strong>.<\/p>\n\n\n\n

85. Who prepares the Union Budget in India?<\/mark><\/strong>
A) Finance Commission
B) Ministry of Finance
C) RBI
D) Planning Commission
Answer: B<\/strong>
Explanation:<\/strong> Department of Economic Affairs (Ministry of Finance)<\/strong> prepares the budget.<\/p>\n\n\n\n

86. Finance Bill becomes law only after:<\/mark><\/strong>
A) Approval by Lok Sabha
B) Approval by both Houses and President\u2019s assent
C) Approval by Rajya Sabha
D) Approval by RBI
Answer: B<\/strong>
Explanation:<\/strong> Finance Bill \u2192 passed by both Houses \u2192 President\u2019s assent \u2192 law.<\/p>\n\n\n\n

87. Which of the following is NOT a direct tax in India?<\/mark><\/strong>
A) Income tax
B) Corporate tax
C) GST
D) Wealth tax (abolished in 2015)
Answer: C<\/strong>
Explanation:<\/strong> GST is an indirect tax<\/strong>.<\/p>\n\n\n\n

88. The largest component of revenue receipts in India is from:<\/mark><\/strong>
A) Non-tax revenue
B) Borrowings
C) GST and other taxes
D) Disinvestment
Answer: C<\/strong>
Explanation:<\/strong> GST and income taxes<\/strong> contribute the largest share.<\/p>\n\n\n\n

89. The largest item of revenue expenditure in India is:<\/mark><\/strong>
A) Subsidies
B) Defence
C) Interest payments
D) Salaries
Answer: C<\/strong>
Explanation:<\/strong> Interest payments<\/strong> form the biggest revenue expenditure.<\/p>\n\n\n\n

90. Capital expenditure of government includes:<\/mark><\/strong>
A) Pensions
B) Construction of highways, dams
C) Interest payments
D) Subsidies
Answer: B<\/strong>
Explanation:<\/strong> Capital expenditure = asset creation or liability reduction<\/strong>.<\/p>\n\n\n\n

91. Disinvestment proceeds are treated as:<\/mark><\/strong>
A) Revenue receipts
B) Capital receipts
C) Revenue expenditure
D) Fiscal deficit
Answer: B<\/strong>
Explanation:<\/strong> Disinvestment reduces asset ownership \u2192 capital receipt<\/strong>.<\/p>\n\n\n\n

92. Which of the following is a tool of fiscal policy in India?<\/mark><\/strong>
A) Repo rate
B) Open market operations
C) Government spending and taxation
D) CRR
Answer: C<\/strong>
Explanation:<\/strong> Fiscal policy = tax & spending decisions<\/strong>.<\/p>\n\n\n\n

93. During inflation, the government should follow:<\/mark><\/strong>
A) Surplus budget policy
B) Deficit budget policy
C) Balanced budget policy
D) Expansionary policy
Answer: A<\/strong>
Explanation:<\/strong> Surplus budget reduces demand \u2192 controls inflation.<\/p>\n\n\n\n

94. During recession, the government should follow:<\/mark><\/strong>
A) Surplus budget policy
B) Deficit budget policy
C) Balanced budget policy
D) Neutral budget policy
Answer: B<\/strong>
Explanation:<\/strong> Deficit budget boosts demand \u2192 helpful in recession.<\/p>\n\n\n\n

95. Which of the following is a qualitative tool of fiscal policy?<\/mark><\/strong>
A) Subsidies
B) Public borrowing
C) Public expenditure allocation
D) Both A and C
Answer: D<\/strong>
Explanation:<\/strong> Targeted subsidies & expenditure<\/strong> are qualitative fiscal tools.<\/p>\n\n\n\n

96. Which Finance Minister has presented the maximum number of Union Budgets?<\/mark><\/strong>
A) Morarji Desai
B) P. Chidambaram
C) Pranab Mukherjee
D) Manmohan Singh
Answer: A<\/strong>
Explanation:<\/strong> Morarji Desai presented 10 budgets<\/strong> (including interim).<\/p>\n\n\n\n

97. The Union Budget is classified into:<\/mark><\/strong>
A) Revenue account and Current account
B) Revenue budget and Capital budget
C) Revenue deficit and Fiscal deficit
D) Central and State budget
Answer: B<\/strong>
Explanation:<\/strong> Union Budget = Revenue + Capital Budget<\/strong>.<\/p>\n\n\n\n

98. The government borrows to meet which deficit primarily?<\/mark><\/strong>
A) Revenue deficit
B) Fiscal deficit
C) Primary deficit
D) Trade deficit
Answer: B<\/strong>
Explanation:<\/strong> Govt borrowing = fiscal deficit financing<\/strong>.<\/p>\n\n\n\n

99. The annual budget is presented in which form in Parliament?<\/mark><\/strong>
A) Money Bill
B) Finance Bill and Appropriation Bill
C) Only Appropriation Bill
D) Demand for Grants
Answer: B<\/strong>
Explanation:<\/strong> Union Budget is presented as Finance Bill + Appropriation Bill<\/strong>.<\/p>\n\n\n\n

100. In India, the first paperless Union Budget was presented in:<\/mark><\/strong>
A) 2018\u201319
B) 2019\u201320
C) 2021\u201322
D) 2022\u201323
Answer: C<\/strong>
Explanation:<\/strong> 2021\u201322 Union Budget<\/strong> was fully paperless due to COVID-19.<\/p>\n\n\n","protected":false},"excerpt":{"rendered":"

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