Budget Basics — Set 1
Economics · बजट की मूल बातें · Questions 1–10 of 70
Which Article of the Indian Constitution refers to the 'Annual Financial Statement'?
Correct Answer: C. Article 112
Article 112 mandates the President to lay the Annual Financial Statement before Parliament. This document is popularly known as the Union Budget. It estimates the receipts and expenditures of the Government for a specific financial year.
The financial year in India currently runs from?
Correct Answer: D. April 1 to March 31
The Indian financial year follows the April to March cycle. This system was adopted in 1867 to align with the British Empire's financial calendar. All tax assessments and government budgeting are based on this period.
Who was the first Finance Minister of Independent India to present the first budget?
Correct Answer: B. R.K. Shanmukham Chetty
R.K. Shanmukham Chetty presented the first budget of independent India on November 26, 1947. This initial budget was meant for a short period of seven and a half months. He was a noted economist and lawyer.
The 'Railway Budget' was merged with the Union Budget in which year?
Correct Answer: C. 2017
The 92-year-old practice of having a separate Railway Budget ended in 2017. This merger was based on the recommendations of the Bibek Debroy Committee. It aimed to create a holistic picture of the government's finances.
Which type of budget is prepared when estimated government expenditure exceeds estimated revenue?
Correct Answer: A. Deficit Budget
A deficit budget indicates that the government intends to spend more than it earns in a year. This gap is usually filled through public borrowing or other financial instruments. It is often used as a tool to stimulate economic growth during a slowdown.
What does the term 'Fiscal Deficit' primarily signify?
Correct Answer: A. Total borrowing requirements of the government
Fiscal deficit represents the total amount the government needs to borrow from the market. It is the difference between total expenditure and total non-debt receipts. A high fiscal deficit can lead to inflation or increased public debt.
The concept of 'Zero-Based Budgeting' (ZBB) implies?
Correct Answer: A. Starting a budget from scratch every year
In Zero-Based Budgeting, every item of expenditure must be justified as if it were a new request. Unlike traditional budgeting, it does not take the previous year's figures as a base. India experimented with this concept in the mid-1980s.
What are 'Capital Receipts' in the context of the Union Budget?
Correct Answer: D. Loans raised by the government
Capital receipts are those that either create a liability or reduce government assets. Examples include market borrowings, small savings, and proceeds from disinvestment. These are distinct from revenue receipts, which do not affect the asset-liability position.
The 'Consolidated Fund of India' is established under which Article?
Correct Answer: C. Article 266
Article 266(1) provides for the Consolidated Fund where all revenues and loans are credited. No money can be withdrawn from this fund without parliamentary authorization. It is the largest and most important of the three government funds.
Which fund is used by the government for meeting unforeseen and urgent expenditures pending parliamentary approval?
Correct Answer: C. Contingency Fund of India
The Contingency Fund of India is established under Article 267. It is placed at the disposal of the President to meet urgent requirements. Such expenditures must be subsequently authorized by the Parliament.