Budget & Taxation

Which of the following options is/are true regarding the Revenue Receipts?

1. Revenue Receipts are the non-refundable receipts of the government
2. Revenue receipts include tax and non-tax revenue
3. Tax revenue receipts don't include taxes imposed by the Center

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What is the basis of taxation in a country?

Which of the following correctly explains Progressive Taxation?

Which of the following is/are the sources of non-tax revenue?

1. Receipts of interest on loans given by the central government
2. Fees and other receipts from the services provided by the government
3. Cash assistance grants provided by foreign and international organizations

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Consider the following assertion (A) and reason (R):

• Assertion (A): After 1991, the rates of taxes levied on personal income have been continuously reduced
• Reason (R): High tax rates encourage tax avoidance/tax evasion, but when tax rates are reduced, savings are boosted, resulting in greater tax compliance.

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What is Tax Expenditure?

Consider the following statements:

1. Tobin tax is a worldwide tax on all foreign exchange transactions.
2. It is intended to reduce exchange rate volatility.

Which of the statement(s) given above is/are TRUE?

Which of the following is/are indirect taxes?

1. Luxury tax.
2. Entertainment tax.
3. Service tax.
4. Wealth tax.
5. Excise.

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As taxes increase from low levels, tax revenue collected by the government also increase after a certain point, increase in tax rate will lead to decrease in tax revenue. Which of the following curve represents this situation?

What is the expected impact of the GST on economy ?

1. It will help the GDP of India to grow.
2. It offers a conducive investment climate
3. It will make our export more competitive
4. It will positively impact the real estate market.

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What do you understand by fiscal drag?

Which of the following are examples of small saving schemes?

1. Postal deposits
2. Public Provident Fund (PPF)
3. Tax-free bonds like IRCL, IIFCL, PFC, HUDCO.

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What is/are true for direct tax?

1. It helps in reducing income disparities between rich and poor.
2. It helps to discourage certain kinds of economic transactions in comparison to others.

Options:

What is the purpose of taxation?

1. It helps in redistribution of wealth.
2. o change the priorities of the private producers by making some lines of production more or less attractive than others.
3. Mobilization of resources for investments in economy.

Progressive tax is a tax which

The capital receipt is the receipt of the government by which

In which of the following situations can a government incur ‘Tax expenditure’?

1. Setting up industries in backward regions
2. Incentives to priority sectors
3. Dispersal of industries

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To which of the following e-Sahyog is related with?

Consider the following statements in India, taxes on transactions in Stock Exchange and Future markets are

1. Levied by Union.
2. Collected by the States.

Which of the statements given above is/are correct?

Which of the following best explains "effective tax rate"?

Which of the following are wrongly matched?

1. Cess a compulsory levy collected by the government from the beneficiaries of particular schemes.
2. Rate a compulsory levy collected by the government for a particular purpose from all persons.
3. Corporation levied by corporations for civic Tax amenities.
4. Value- tax on final consumption added Tax collected at the consumption stage.

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Consider the following statements:

1. The real interest rate is the rate of interest an investor expects to receive after allowing for inflation.
2. The real interest rate is described by the Fisher equation.

Which of the above statements is/are correct?

The example of Direct Taxes is/are:

1. Corporate Tax
2. Excise Duty
3. Customs Duty
4. Income Tax

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Which among the following is/ are correct about Laffer Curve?

1. It reflects relationship between possible rates of taxation and the resulting levels of government revenue.
2. Laffer curve also suggests that increasing tax rates beyond a certain point will also raise further tax revenue.

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To secure equity over time, which principle of government finance is generally recommended?

Consider the following

1. Increase in interest rate
2. Increase in foreign investment
3. Increase in tax revenue

Which of these above leads to appreciation of the domestic currency?

Which one of the following is not a measure to stimulate economic growth?

Which of the following taxes does not directly increase the price of a commodity to buyers?

The Laffer curve shows relationship between

Which one of the following taxes belongs exclusively to the state governments?

An ad valorem duty is a tax levied on the basis of

Which of the following fall under the category of direct tax?

1. Wealth Tax
2. Gift Tax
3. Estate Duty
4. Securities Transaction Tax

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What are the probable reasons for introducing Goods and Service Tax (GST) in India?

1. Cascading nature of current tax regime.
2. High Tax Evasion.
3. Tax realization is inconsistent with Tax potential.

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Which of the following is a measure of expansionary fiscal policy?

1. Decrease in tax rate.
2. Increase in Pensions.
3. Increase in unemployment compensation.
4. Increase in tax rate.

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Who among the following constitutes the GST council?

1. Union Finance Minister
2. Finance Secretary
3. Vice Chairman of NITI Aayog
4. Minister of State for Revenue
5. State Finance Ministers

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During British period, which of the following steps were taken to fight the Famine?

1. Famine Code was developed to fight the Famine.
2. There was an emphasis on development of “Moral Strategy”, distribution of advances and loans to the peasants.
3. Famine Commissioner was appointed in the famine affected provinces.

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Which of the following is/are correct?

Agricultural Income in tax is assigned to the State government by:

1. The Finance Commission
2. The National Development Council
3. The Inter State Council

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Which of the following statementes is/are correct with respect to direct taxation?

1. Proportional Taxation - in which the tax is charged at fixed rate.
2. Regressive taxation – where with the increased income the rate of taxation goes higher.
3. Progressive taxation - where with the increased income, the rate of taxation goes down.

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Consider the following Statement regarding Goods and Service Tax (GST)

1. Crude petroleum, diesel, petrol, aviation turbine fuel, Natural gas and alcohol have been included under the purview of GST.
2. Centre and State government both have power to make law and state government can be override by centre government.
3. It creates a Dispute settlement Authority to resolve disputes between states or between states and the centre.

Which of the above statement(s) is/are correct?

Advalorem tax is based upon

Consider the following statements:

1. The Revenue Budget includes current receipts of the Government and details of the expenditure made on these receipts
2. The Capital Budget includes the assets and liabilities of the Government

Which of the above statements is/are true?

Which of the following factors is not included in the Revenue Expenditure?

Which of the following sources is not included in the Capital Receipts?

Which of the following is the example of Capital Receipt?

Which of the following factors is/are included in the Capital Expenditure?

1. Acquisition of Lands
2. Investment in building construction, machinery, etc.
3. Investment in share
4. Loan given by the central government

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What type of receipt or expenditure is the income earned by the Government through the sale of Treasury Bill?

Which of the following statements is/are true?

Consider the following statements regarding the Budget:

1. Budget no longer remained the details of receipts and expenditures but it became a document of o national policies (Due to the Five Years Plans)
2. Budget defines the nature of the country's economic life
3. An Act was brought in 2004 for fiscal responsibilities and budget management

Which of the above statements is/are true?

Under the Fiscal Responsibility and Budget Management Act, 2003, apart from budget which of the following policy details are mandatory?

Match the following:

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Consider the following statements regarding the FRBM Act, 2003?

1. It aims to bring down the government's fiscal deficit to 3% of the GDP. Initially, the deadline for the implementation of the targets was March 31, 2009, which was later extended
2. The Act bans the purchase of primary issues of the Central Government securities by the RBI
3. The Act requires the government to lay before the parliament quarterly statements of receipts and expenditures

Which of the above statements is/are true?

Which of the following is/are included in the Non Plan Expenditure of the Budget of the Government?

1. Interest Payments.
2. Defence Services.
3. Subsidies.
4. Salaries and Pensions.

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Which of the following statements is true with respect to the government budget?

What are the main items of a capital receipts?

1. Loans raised by the government from the public.
2. Loans received from foreign governments and international bodies.
3. Recoveries of loans granted to state and union territory governments and other parties.
4. Small savings and deposits in the public provident fund (PPF) etc.

The condition for rise in 'capital gains' is/are:

1. Increase in the sales of a product.
2. Natural increase in the value of the property owned.
3. When you purchase a painting and there is a growth in its value due to increase in its popularity.

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What is Average revenue?

Indicative planning was started in the country with the launch of economic reforms in 1991. Which of the following is not a feature of 'indicative planning'?

The budget broadly comprises of revenue and capital budget. Which of the following items are correctly matched with their respective categories?

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Annual Budget of the Government of India is prepared by------?

Which of the following statements is/are correct regarding zero-based budgeting?

1. It is an extension of corporate principles to the arena of public budgeting.
2. Objective is to achieve efficiency in the budgetary process by minimizing wasteful expenditure and maximizing the outcomes.

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Which of the following is/are included in the capital budget of the Government of India?

1. Borrowings from the RBI.
2. Loans received from foreign governments.
3. Expenditure on acquisition of assets.
4. Interest payments on the loans.

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Which of the following is the correct definition of budget deficit?

Which of the following statements regarding external borrowings for funding of Deficit Budget is/are correct?

1. The external borrowing is cheaper in longer term and comes in foreign exchange, which the government can use to meet its fiscal deficit.
2. The Government also prefers borrowing from the external sources because internal borrowing can be available only for short term.

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Union Budget of the Government of India is prepared by------?

Which of the following are included in capital receipts of budget?

1. Recovery of loans
2. Borrowings and other liabilities
3. Interest
4. Proceeds of PSU disinvestment

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