Budget Basics — Set 4
Economics · बजट की मूल बातें · Questions 31–40 of 70
Which type of deficit is considered a better indicator of the government's current fiscal health?
Correct Answer: B. Primary Deficit
Primary deficit excludes interest payments, focusing on the current year's fiscal decisions. It shows how the government's current policies contribute to borrowing. A zero primary deficit means the government borrows only to pay back old interest.
Who assists the Finance Minister in preparing the Economic Survey?
Correct Answer: D. The Chief Economic Adviser
The Chief Economic Adviser (CEA) is the primary architect of the Economic Survey. They lead the Economic Division of the Department of Economic Affairs. The document reflects the CEA's perspective on the state of the economy.
The term 'Capital Expenditure' (CapEx) refers to money spent on?
Correct Answer: C. Creation of assets like roads and bridges
Capital expenditure is spent on acquiring, repairing, or improving long-term assets. This type of spending is essential for increasing the productive capacity of the economy. It includes investments in infrastructure and machinery.
Under the 'Charged Expenditure' category, the items are?
Correct Answer: B. Not votable by Parliament
The correct answer is 'Not votable by Parliament'. Charged expenditures, like salaries of the President and Judges, can be discussed but are not put to vote. This ensures the independence of high constitutional offices. These expenses are directly withdrawn from the Consolidated Fund.
What happens if the Union Budget is not passed by the Lok Sabha?
Correct Answer: B. The entire Council of Ministers must resign
Failure to pass the budget in the Lok Sabha is equivalent to a vote of no confidence. Since the lower house controls the money, the government loses its right to rule. In such a scenario, the Prime Minister usually submits the cabinet's resignation.
The 'Pink' colored document in the budget traditionally represents the?
Correct Answer: A. Economic Survey
The Economic Survey was famously printed with a pink cover in 2018 to symbolize support for women's empowerment. Traditionally, it is a separate document from the budget speech. It remains one of the most widely read economic documents in India.
Which of the following is a 'Non-Tax Revenue' receipt for the government?
Correct Answer: A. Dividends from RBI
Non-tax revenue includes income from sources other than taxation, such as interest, dividends, and fees. Profits from Public Sector Undertakings and the RBI surplus are major components. These receipts are part of the Revenue Budget.
Which Constitutional Amendment introduced the Goods and Services Tax (GST) in India?
Correct Answer: A. 101st Amendment
The 101st Amendment Act of 2016 cleared the path for GST. It created a unified national market by subsuming various indirect taxes. GST came into effect on July 1, 2017.
The word 'Budget' is derived from the French word 'Bougette', which means?
Correct Answer: A. Little bag
The correct answer is 'Little bag'. The term 'Bougette' refers to a small leather bag used by officials to carry financial documents. This historical reference eventually gave birth to the modern term 'Budget'. It reflects the old practice of bringing the budget papers in a bag.
Which state was the first to introduce 'Child Budgeting' in India?
Correct Answer: C. Madhya Pradesh
Madhya Pradesh introduced a separate child budget as part of its annual state budget in 2022. It focuses on specific allocations for the health, education, and nutrition of children. This follows the broader trend of thematic budgeting like gender budgets.