Government Budget and the Economy

India adopted the ‘mixed economy’ model after independence. Which of the following is correct about ‘mixed economy’?

Consider the following statements:
1. The government ts constitutionally obliged to present before the Parliament a statement of estimated receipts and expenditures of the government in respect of every financial year.
2. The impacts of an annual general budget remains confined to that financial year only.
The correct statement(s) is/are:

Which of the following would be considered as “public good(s)”?
1. Roads
2. General Administration
3. Food items
Choose the correct answer using the options given below:

Consider the following statements with reference to difference between public and private goods:
1. Public goods are always non-excludable.
2. Public goods may be produced by the government or the private sector.
The correct statement(s) is/are:

Which of the following most correctly implies the meaning of ‘public provision’ in context of economics?

Consider the following statements:
1. Out of public income, what finally reaches the households is known as personal income.
2. The government sector affects the personal disposable income of households by making transfers and collecting taxes.
The correct statement(s) is/are:

When in an economy the unemployment soars high, the government intervention measures aim at:

Consider the following statements:
1. Revenue receipts are those receipts that do not lead to a claim on the government.
2. Under progressive taxing system, a uniform rate of tax is charged across the different class of taxable groups.
The correct statement(s) is/are:

Non-tax revenue of the central government mainly consists of :
1. Interest receipts on account of loans by the central government
2. Dividends and profits on investments made by the government.
3. Fees and other receipts for services rendered by the government.
4. Foreign loans received by the Government of India.
Choose the correct answer using the options given below:

Consider the following statements:
1. The purpose of revenue expenditure is strictly the creation of physical or financial assets of the central government.
2. Interest payments on debt incurred by the government is an important constituent of capital expenditure.
The correct statement(s) is/are:

After introduction of GST, there has been a demand of introducing direct tax reforms. A direct tax is a tax which Is imposed on:

Consider the following statements:
1. The Medium-term Fiscal Policy Statement under FRBMA sets a three- month rolling target for specific fiscal indicators.
2. The Fiscal Policy Strategy Statement sets the priorities of the government in the fiscal area, examining current policies and justifying any deviation in important fiscal measures.
The correct statement(s) is/are:

Which of the following is correct mathematical formulation of revenue deficit?

Consider the following statements:
1. Fiscal deficit is the difference between the government\’s total expenditure and its total receipts excluding borrowing.
2. The most common way to plug the fiscal deficit is to print more money by RBI.
The correct statement(s) is/are:

Consider the following statements: 1. The goal of measuring primary deficit is to focus on present fiscal imbalances.
2. Net interest labilities also consist of interest payments including interest receipts by the government on net domestic lending.
The correct statement(s) is/are:

Which of the following entities operates fiscal policy of India?

If all the people of the economy increase the proportion of income they save (i.e. if
the mps of the economy increases) the total value of savings in the economy will
not increase – it will either decline or remain unchanged. This is popularly called as:

Consider the following statements regarding Revenue Receipts:
1. Revenue receipts are receipts of the government which are non-redeemable, that is, they cannot be reclaimed from the government.
2. They are divided into tax and non-tax revenues.
The correct statement(s) is/are:

Which of following form part of non-tax revenue receipts of government:
1. Interest receipts on account of loans.
2. Dividends and profits on investments made.
3. Cash grants-in-aid from foreign countries and international organisations
Choose the correct answer using the options given below:

Consider the following statements regarding Revenue Expenditure:
1. Revenue Expenditure is expenditure incurred for purposes other than the creation of physical or financial assets of the central government.
2. Interest payments on loans {s an important component of revenue expenditure.
The correct statement(s) is/are:

Which of following are part of capital receipts of government:
1. Market Borrowings of the government
2. Borrowing by the government from the Reserve Bank and commercial banks
3. Small savings (Post-Office Savings Accounts, National Savings Certificates, etc.)
4. PSU disinvestment
Choose the correct answer using the options given below:

Consider the following statements regarding Primary Deficit:
1. The goal of measuring primary deficit is to focus on present fiscal imbalances.
2. It is simply the fiscal deficit minus the interest payments.
The correct statement(s) is/are: