UPSC Economic Questions and Answers

UPSC Economic Questions and Answers

The civil services exam is one of the toughest examinations conducted in the country, and economy questions constitute a major of the two written phases of the examination. At BYJU’S we bring to you a compiled list of Economy questions along with answers that are suitable from the prelims and mains perspective.

These answers have been provided by UPSC experts for the candidate’s assistance, without any indirect or ambiguous information. Questions based on sustainable development, GDP, economic growth, taxation, etc. are included in the economy syllabus and the list of questions provided below will focus on the same.

The compiled list of questions given below comes with straightforward and crisp answers, with the IAS mains General Studies-III paper syllabus as the focal point. Aspirants can refer to these questions and answers and familiarize themselves with the depth of important economic topics as per the UPSC Syllabus.

Which type of budget is best?
Deficit budgets are better suited for developing economies. Whenever there is a recession, a deficit budget will help in generating employment...
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Which budget is used by the government?
Currently one can say that the budget presented by the Government is deficit budget. Rs 34,83,236 crore is the proposed expenditure of the Union...
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Who is known as the father of the Indian budget?
K. Shanmukham Chetty presented the first ever budget of Independent India on 26th November 1947. Before independence, it was British economist...
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How is the budget prepared?
The Ministry of Finance in consultation with other Ministries and NITI Aayog prepares the Union Budget. The nodal body for producing the budget...
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Why is the deficit bad?
Whether the fiscal deficit is good or bad is a matter of debate among economists. The nature of deficit helps one to understand whether the...
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Why is a budget deficit not necessarily a bad thing?
When the Government is spending more, there is more money circulating in the economy thereby helping the economy to grow. It helps more people to...
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How does the government deficit affect the economy?
Government budget deficit occurs when the Government spending is more than the revenue generated by the Government. More spending could be due to...
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What are the 6 major sources of tax revenue?
The 6 major sources of tax revenue are Income tax, corporate tax, Goods and Services Tax (GST), Customs duties, Union Excise duties, Wealth tax...
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What are the components of a revenue budget?
The components of a revenue budget are the expenditure and the revenues from tax and other sources; this component is known as revenue receipts...
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What are the 5 major sources of revenue for the government?
The 5 major sources of revenue for the Government are Goods and Services Tax (GST), Income tax, corporation tax, non-tax revenues, union excise...
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What are the two types of budget?
Based on the feasibility of estimates, the Government budget can be categorised as deficit budget, surplus budget and balanced budge.You can read...
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Is revenue the same as budget?
No, the revenue is not the same as the budget. Revenue is the income generated, whereas budget is the amount that is available, which can be used...
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What is the annual revenue budget?
The annual revenue budget of the Government gives information on the sources of revenue, of the government. The revenue budget consists of...
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Is the revenue budget and sales budget the same?
Sales budgets are financial plans that estimate the total revenue a company makes in a specific period. Revenue budgets are forecasts of a...
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What is the current government deficit?
The fiscal deficit was Rs 18,21,461 crore. Fiscal deficit for 2020-21 was at 9.3 per cent of the gross domestic product (GDP). As per the data...
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What causes a government budget deficit?
The two primary causes of the government budget deficit are, very low revenue is generated from taxation and the expenditure of the Government is...
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Is 2021 a budget deficit?
3.5% of GDP was the fiscal deficit target for 2020-21. Due to Covid-19 pandemic, the budget deficit shot up to 9.5% of the GDP. For the year...
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Is debt and deficit the same thing?
No, the debt and deficit are not the same thing. Deficit happen when the expenditure is more than the revenue. A Government budget is deficit...
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What is the 2021 deficit?
For 2021-22, the fiscal deficit target fixed by the Government was 6.8% of the GDP. By 2025-26, the Government aims to bring down the fiscal...
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What is the revenue budget in simple words?
The revenue budget helps us to understand the sources from where the Government is getting their revenue. It shows tax revenues, other revenues...
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