Tag: public finance and budget

Questions Related to public finance and budget

Which of the following public revenue is a major contributor to the total central revenue?

economics public finance and budget black money and tax evasion meaning of tax direct taxes

  1. Tax revenue

  2. Non-tax revenue

  3. Both A and B have equal contribution

  4. None of the above

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Correct Option: A
Explanation:

Public revenue which is a major contributor to the total central revenue is tax revenue. Revenue earned by government by taxing people is called tax-revenue. It is of two types:

  • Direct tax: tax payed to the government directly. Examples include income tax, gift tax, wealth tax, property tax etc.
  • Indirect tax: this tax is collected by an intermediary person from the person who ultimately bears the burden. Examples are sales tax, value added tax (VAT), goods and services tax (GST) etc. 

The difference between total expenditure and total receipts is _____.

economics public finance and budget black money and tax evasion meaning of tax direct taxes

  1. fiscal deficit

  2. budget deficit

  3. primary deficit

  4. revenue deficit

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Correct Option: B
Explanation:

A status in which government’s expenditure exceeds more than its revenue is called budget deficit. The term budget deficit is most commonly used to refer to government spending rather than business or individual spending, but can be applied to all of these entities. 

The tax levied by the Union Government on income of individuals is known as ______.

economics public finance and budget black money and tax evasion meaning of tax direct taxes

  1. personal income tax

  2. interest tax

  3. wealth tax

  4. corporate tax

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Correct Option: A
Explanation:

Personal income tax- it is based on the principle of ability to pay. The tax levied by the union government on income of individuals is known as income tax.

The difference between revenue expenditure and revenue receipts is ______.

economics public finance and budget black money and tax evasion meaning of tax direct taxes

  1. revenue deficit

  2. fiscal deficit

  3. budget deficit

  4. primary deficit

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Correct Option: A
Explanation:

Revenue deficit=revenue expenditure & revenue receipts

The major source of revenue for the government is _____.

economics public finance and budget black money and tax evasion meaning of tax direct taxes

  1. loans

  2. fines

  3. taxes

  4. fees

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Correct Option: C
Explanation:

The individual income tax has been the largest single source of federal revenue since 1950, amounting to 46 percent of the total and 8 percent of gross domestic product (GDP) in 2014.

The term money held by public excludes money held by ________.

economics public finance and budget black money and tax evasion meaning of tax direct taxes

  1. RBI

  2. Commercial banks

  3. Central Government

  4. All the three

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Correct Option: D

The Union Cabinet approved signing and ratification of tax agreement with which nation?

economics public finance and budget black money and tax evasion meaning of tax direct taxes

  1. Samoa

  2. Fiji

  3. Palau

  4. Australia

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Correct Option: A

Which of the following panel was appointed to put forward recommendation of GAAR? 

economics public finance and budget black money and tax evasion meaning of tax direct taxes

  1. Ready panel

  2. P. Shome panel

  3. Rangarajan panel

  4. None of these

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Correct Option: B

_______ is a compulsory contribution from a person to the expenses incurred by the State in common interest of all without reference to specific benefits conferred on any individual. 

economics public finance and budget black money and tax evasion meaning of tax direct taxes

  1. Tax

  2. Fees

  3. Rates

  4. All of the above

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Correct Option: A

Which committee recommended simplification and rationalization of tax system in India?

economics public finance and budget black money and tax evasion meaning of tax direct taxes

  1. Chelliah

  2. Boothalingam

  3. Both (a) & (b)

  4. Urjit Patel

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Correct Option: C