Indian Economy – Fiscal Policy, Budget, India’s Debt

General Knowledge Test with questions about different types of economies for exams like UPSC, SSC, UPPSC, Banking, RPSC, MPSC, KAS, MPPSC, and others.

1. Which of the following definitions is closest to Gross Budgetary Support?

  1. The total revenue generated by the government
  2. The total expenditure incurred by the government
  3. The total amount of loans taken by the government
  4. The financial assistance provided by the government to the central plan
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Answer: Option D. The financial assistance provided by the government to the central plan

2. Which article of the Indian Constitution contains the provision that an annual Financial Statement (Budget) must be presented before parliament for each financial year?

  1. Article 110
  2. Article 114
  3. Article 112
  4. Article 116
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Answer: Option C. Article 112

3. Which of the following is the correct definition of fiscal deficit?

  1. The difference between total revenue and total expenditure of the government in a financial year
  2. The difference between total revenue and total capital expenditure
  3. The difference between total expenditure and total loans
  4. The difference between total revenue and total grants
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Answer: Option A. The difference between total revenue and total expenditure of the government in a financial year

4. Which of the following best describes a Balanced Budget?

  1. When total revenues exceed total expenditures
  2. When total revenues equal total expenditures
  3. When total expenditures exceed total revenues
  4. When there is no deficit or surplus
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Answer: Option B. When total revenues equal total expenditures

5. In which year was “Zero Based Budgeting” introduced in India?

  1. 1983
  2. 1991
  3. 1975
  4. 2000
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Answer: Option A. 1983