Tag: public finance and budget

Questions Related to public finance and budget

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment is called ________.

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. capital expenditure

  2. revenue expenditure

  3. both A and B

  4. none

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Correct Option: A
Explanation:

Capital expenditure are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. It is often used to undertake new projects or investments by the firm. 

The government manages public finance through _____________.

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. annual budget

  2. revenue it generates

  3. private finance

  4. none of the above

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Correct Option: B
Explanation:

Government generates revenue which it uses to manage it towards public works to be done.

 Bharat Nirman, MGNREGA are examples of _______.

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. plan expenditure

  2. non-plan expenditure

  3. capital expenditure

  4. none of the above

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Correct Option: A

Pick out the item which is not a part of the plan expenditure.

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. Agriculture

  2. Industry

  3. Social Services

  4. Defence

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Correct Option: D
Explanation:

Plan expenditure is essentially the budget support to the Central Plan and the Central assistance to State and Union Territory plans. Like all budget heads, this is also split into revenue and capital components. Defense is not part of plan expenditure.

Capital expenditure is categorised as ________.

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. planned

  2. unplanned

  3. both A and B

  4. none of the above

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Correct Option: C
Explanation:

Any expenditure that is incurred on programmes which are detailed to state for their plans is called planned expenditure. The estimated expenditure provided in the budget for spending during the year on routine functioning of the government is unplanned expenditure. So capital expenditure comprises both.

The difference between total expenditure and total receipts is ______.

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. fiscal deficit

  2. budget deficit

  3. primary deficit

  4. revenue deficit

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Correct Option: B
Explanation:

The budget deficit is the difference between current government's spending on goods and services and total current revenue from all types of taxes net of transfer payments.

The fiscal deficit of central government according to 2012-2013 as percent of GDP was _______.

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. 4.9%

  2. 4.8%

  3. 4.7%

  4. 4.5%

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Correct Option: A

Capital account of the government consists of _______.

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. capital receipts

  2. capital expenditure

  3. both A and B

  4. none of the above

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Correct Option: C

Gross fiscal deficit is calculated by subtracting which of the following from total expenditure ________.

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. revenue receipts

  2. non-debt capital receipts

  3. both A and B

  4. none of the above

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Correct Option: C

Which of the following is the most comprehensive measure of budgetary imbalances? 

economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

  1. Fiscal deficit

  2. Revenue deficit

  3. Primary deficit

  4. All of the above

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Correct Option: A
Explanation:

The extent of fiscal deficit is an indication of how far the government is spending beyond its means.