Tag: meaning and scope of public finance

Questions Related to meaning and scope of public finance

The difference between total expenditure and total receipts except loans and other liabilities is called ______.

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

Show answer
Correct Option: A
Explanation:

Fiscal deficit refers to the excess of total expenditure over total receipts (excluding borrowings) during the given fiscal year. Fiscal Deficit = Total Expenditure – Total Receipts excluding borrowings. The extent of fiscal deficit is an indication of how far the government is spending beyond its means.

Study of income and expenditure of government at state, central and local levels is called ______.

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

  1. marketing

  2. public financing

  3. socio-economic study

  4. none of the above

Show answer
Correct Option: B
Explanation:

Public finance is the study of the role of the government in the economy. It is the branch of economics which assesses the government revenue and expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones.

The difference between fiscal deficit and interest payment during the year is called ______.

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

Show answer
Correct Option: C
Explanation:

Primary deficit is one of the parts of fiscal deficit. While fiscal deficit is the difference between total revenue and expenditure, primary deficit can be arrived by deducting interest payment from fiscal deficit. Interest payment is the payment that a government makes on its borrowings to the creditors.

What is the role of government in public finance?

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

  1. Promotion of human capital accumulation

  2. Decentralisation

  3. Provision of essential public goods

  4. All the above

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Correct Option: D

What are the features of Fiscal Responsibility and Budget Management Act, (FRBMA) 2003? 

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

  1. To reduce fiscal deficit to not more than 3 percent of GDP

  2. To ensure greater transparency in fiscal operations.

  3. To eliminate the revenue deficit by March 31, 2009

  4. All the above

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Correct Option: D
Explanation:

The FRBMA is an act which institutionalizes and regulates financial discipline and help manage public funds in order to strengthen India's fiscal position. The purpose of FRBMA was to reduce fiscal deficit. 

Borrowing from all the sides like net borrowing from RBI and from abroad gives _______.

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

Show answer
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. So when borrowing is done from RBI or other sources, that creates the budget deficit.

The difference between total expenditure and total receipts except loans and other liabilities is called _______.

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

Show answer
Correct Option: A
Explanation:

The fiscal deficit is the primary deficit plus interest payments on the debt. Therefore, if refers to the difference in total expenditure and total receipts without loan and other liability.

The government manages the 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. fiscal policy

  2. budget policy

  3. revenue policy

  4. primary policy

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Correct Option: A
Explanation:

By means of fiscal policy, government adjusts its spending levels and tax rates to monitor and influence a nation's economy. Though fiscal policies, government makes its public finance.

Which of the following is the wrong pair?

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

  1. Share Market-Stock Exchange

  2. Income Tax -Monetary Policy

  3. Export Subsidy-Fiscal Policy

  4. General Price Index-Inflation

Show answer
Correct Option: B
Explanation:

Income tax is a form of direct tax. This comes under the fiscal policy of the government. 

Fiscal Policy is the mechanism by means of which a government makes adjustments to its planned spending and the imposed tax rates to monitor and thus in turn influence the performance of a country’s economy. 

Who is Chairman of $13th$ Finance Commission?

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

  1. Dr. C. Rangarajan

  2. Mr. Vimal Jalan

  3. Dr. Vijay C. Kelkar

  4. None of the above

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Correct Option: C