MCQs BASED ON UNION BUDGET- CONCEPTUAL FRAMEWORK

MCQs BASED ON UNION BUDGET 2017-18

CONCEPTUAL FRAMEWORK OF BUDGET

Q1. Consider the following statements regarding Fiscal Deficit:

  1. Fiscal Deficit is the difference between the Revenue Receipts plus Non-debt Capital Receipts (NDCR) and the total expenditure.
  2. This indicates the total borrowing requirements of Government from all sources.

Which of following statements are correct?

a. only 1

b. only 2

c. Both 1 & 2

d. None of the above

Q2. Which of following correctly differentiates revenue deficit from effective revenue deficit?

  1. Revenue Deficit refers to the excess of revenue expenditure over revenue receipts.
  2. Effective Revenue Deficit is the difference between Revenue Expenditure and grants for creation of capital assets.

Which of following statements are correct?

a. only 1

b. only 2

c. Both 1 & 2

d. None of the above

Q3. Apart from Union Budget, Which of following other documents are presented in Parliament as part of Union Budget?

  1. Macro-Economic Framework Statement
  2. Fiscal Policy Strategy Statement
  3. Medium Term Fiscal Policy Statement
  4. Medium Term Expenditure Framework Statement

Which of following statements are correct?

a. only 1 & 3

b. only 2 & 3

c. All are correct

d. None of the above

 

Q4. Consider the following regarding parts of Annual Financial Statement of Govt of India?

  1. The receipts and disbursements are shown under three parts in which Government Accounts are kept viz.,(i) The Consolidated Fund of India, (ii) The Contingency Fund of India and (iii) The Public Account of India.
  2. The Annual Financial Statement does not distinguish the expenditure on revenue account from the expenditure on other accounts, as is mandated in the Constitution of India.

Which of following statements are correct?

a. only 1

b. only 2

c. Both 1 & 2

d. None of the above

Q5. Which of following statements regarding Consolidated fund of India are incorrect?

  1. The Consolidated Fund of India (CFI) draws its existence from Article 266 of the Constitution.
  2. All revenues received by the Government, loans raised by it, and also receipts from recoveries of loans granted by it, together form the Consolidated Fund of India.
  3. All expenditure of the Government is incurred from the Consolidated Fund of India
  4. No amount can be drawn from the Consolidated Fund without due authorization from the President.

Which of following statements are incorrect?

a. only 1 & 4

b. only 2 & 4

c. only 4

d. None of the above

Q6. Which of following statements regarding Contingency fund of India are incorrect?

  1. Article 267 of the Constitution authorises the existence of a Contingency Fund of India.
  2. It is an imprest placed at the disposal of the President of India to facilitate meeting of urgent unforeseen expenditure by the Government pending authorization from the Parliament.
  3. Parliamentary approval for such unforeseen expenditure is obtained, ex- post-facto, and an equivalent amount is drawn from the Consolidated Fund to recoup the Contingency Fund after such ex-post-facto approval.
  4. The corpus of the Contingency Fund as authorized by Parliament presently stands at `500 crore.

Which of following statements are incorrect?

a. only 1 & 4

b. only 2 & 4

c. only 4

d. None of the above

Q7. Which of following statements regarding Public Account of India are incorrect?

  1. Moneys held by Government in trust are kept in the Public Account.
  2. Provident Funds, Small Savings collections, income of Government set apart for expenditure on specific objects such as road development, primary education, other Reserve/Special Funds etc., are examples of moneys kept in the Public Account.
  3. Public Account funds that do not belong to the Government and have to be finally paid back to the persons and authorities who deposited them,
  4. They require Parliamentary authorisation for withdrawals.

Which of following statements are incorrect?

a. only 1 & 4

b. only 2 & 4

c. only 4

d. None of the above

 

Q8. Consider the following statements regarding revenue budget:

  1. The Revenue Budget consists of the revenue receipts of the Government (tax revenues and other Non Tax revenues) and the expenditure met from these revenues.
  2. Excess of Revenue receipts over Revenue expenditure is Revenue Deficit.

Which of following statements are correct?

a. only 1

b. only 2

c. Both 1 & 2

d. None of the above

Q9. Consider the following regarding revenue receipts of government.

  1. The estimates of revenue receipts shown in the Annual Financial Statement take into account the effect of various taxation proposals made in the Finance Bill.
  2. Other non-tax receipts of the Government mainly consist of interest and dividend on investments made by the Government, fees and other receipts for services rendered by the Government.

Which of following statements are correct?

a. only 1

b. only 2

c. Both 1 & 2

d. None of the above

Q10. Consider the following regarding revenue expenditure of government.

  1. Revenue expenditure is for the normal running of Government departments and for rendering of various services, making interest payments on debt, meeting subsidies, grants in aid, etc.
  2. Broadly, the expenditure which results in creation of assets for the Government of India, is treated as revenue expenditure.

Which of following statements are correct?

a. only 1

b. only 2

c. Both 1 & 2

d. None of the above

Q11. Consider the following regarding revenue grants of central government to states in relation to Union Budget:

  1. All grants given to the State Governments/Union Territories and other parties are also treated as revenue expenditure even though some of the grants may be used for creation of capital assets.
  2. Revenue expenditure which results in the creation of capital assets is added to revenue deficit to arrive at the Effective Revenue Deficit (ERD).

Which of following statements are correct?

a. only 1

b. only 2

c. Both 1 & 2

d. None of the above

Q12. What is the correct formula for Effective Revenue Deficit (ERD):

a. Effective Revenue Deficit(ERD) = Revenue Deficit – Grants for Creation of Capital Assets

b. Effective Revenue Deficit(ERD) = Revenue Deficit + Grants for Creation of Capital Assets

c. Effective Revenue Deficit(ERD) = Revenue Receipts – Grants for Creation of Capital Assets

d. Effective Revenue Deficit(ERD) = Revenue Receipts – Grants for Creation of Revenue Assets

Q13. The capital receipts under Union Budget include:

  1. loans raised by the Government from the public (these are termed as market loans),
  2. borrowings by the Government from the Reserve Bank of India and other parties through the sale of Treasury Bills,
  3. the loans received from foreign Governments and bodies, disinvestment receipts and recoveries of loans from State and Union Territory Governments and other parties.

Which of following statements are correct?

a. only 1

b. only 2

c. All

d. None of the above

Q14. The capital payments under Union Budget include:

  1. Capital expenditure on acquisition of assets like land, buildings, machinery, equipment, as also investments in shares, etc.,
  2. Loans and advances granted by the Central Government to the State and the Union Territory Governments, Government companies, Corporations and other parties.

Which of following statements are correct?

a. only 1

b. only 2

c. Both 1 & 2

d. None of the above

Q15. The estimates of receipts and disbursements in the Annual Financial Statement and of expenditure in the Demands for Grants are shown according to the accounting classification referred to which article of the Constitution?

a. Art. 150

b. Art. 161

c. Art. 112

d. Art. 123

Q16. Consider the following regarding “Demands for Grants”

  1. The estimates of expenditure from the Consolidated Fund of India included in the Annual Financial Statement and required to be voted by the Lok Sabha are to be submitted in the form of Demands for Grants.
  2. Generally, one Demand for Grant is presented in respect of each Ministry or Department.
  3. With regard to Union Territories without Legislature, a separate Demand is presented for each of such Union Territories.

Which of following statements are correct?

a. only 1 & 3

b. only 2

c. All

d. None of the above

Q17. After the Demands for Grants are voted by the Lok Sabha, the Parliament’s approval for the withdrawal from the Consolidated Fund of the amounts so voted and of the amount required to meet the expenditure charged on the Consolidated Fund is sought through the _______________ Bill.

a. Appropriation

b. Finance

c. Expenditure

d. Ordinary

Q18. Consider the following statements regarding Finance Bill?

  1. It details the imposition, abolition, remission, alteration or regulation of taxes proposed in the Budget.
  2. A Finance Bill is a Money Bill as defined in Article 110 of the Constitution.

Which of following statements are correct?

a. only 1

b. only 2

c. Both 1 & 2

d. None of the above

Q19. Which of following statements is presented alongwith Union Budget as per FRBM Act, 2003?

  1. Macro-Economic Framework Statement
  2. Fiscal Policy Strategy Statement
  3. Medium-Term Fiscal Policy Statement
  4. Medium-Term Expenditure Framework Statement

Which of following statements are correct?

a. only 1 & 3

b. only 2 & 3

c. All

d. None of the above

Q20. Consider the following statements regarding Outcome Budget:

  1. With effect from Financial Year 2007-08, the Performance Budget and the Outcome Budget hitherto which were presented to Parliament separately by Ministries/Departments, were merged and presented as a single document titled “Outcome Budget” in respect of each Ministry/ Department.
  2. From Financial Year 2017-18 onwards, the Outcome Budget of all Ministries have been combined into one single document and will be brought out by the Ministry of Finance in collaboration with the NITI Aayog.
  3. The Outcome Budget broadly indicates the outcomes of the financial budget of a Ministry/Department, indicating actual deliverables linked with outlays targetted during the year and in the medium term.

Which of following statements are correct?

a. only 1 & 3

b. only 3

c. All

d. None of the above

To download Solutions. Click Here.

To check out more MCQs. Click Here.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Optionally add an image (JPEG only)