Budget

Q.

Which of the following are the objectives of government budget?

1. Redistribution of income and wealth

2. Economic stability

3. GDP growth

4. All of these

Q.

What are the implications of a fiscal deficit? Explain any four.

Q.

Which of the following is NOT included in the budget for a business?

1. Operating expenses

2. Setup cost

3. None of the above

4. Total cash outflow and total cash inflow

Q.

How can 'Jan-Dhan Yojana' be used as an instrument to increase the supply of money by the commercial banks?

Q.

Net National Product at Factor Cost of a particular country in a year is Rs. 1900 crores. There are no interest payments made by the households to the firms/government to the households. The personal disposable income of the households is 1200 crores. The personal income taxes paid by them is 600 crores and the value of retained earnings of the firms and government is valued at 200 crores. What is the value of transfer payments made by the government and firms to the households?

Q.

In the context of government budget, which of the following statements is correct?

1. It is a detail of actual receipts and expenditures of the government in a financial year

2. It offers a detailed description of achievements of the government during the five year plans

3. Budget is a statement of expected annual receipts and expenditures of the government

4. It indicates BoP status of the domestic economy

Q.

What is the significance of measuring fiscal deficit?

Q.

Find the balance on the balance of payments account. Is the overall balance of payments balanced?

$\begin{array}{ccc}\text{Items}& & \text{(Rs in lakhs)}\\ \text{(i) Capital account balance}& & (-)400\\ \text{(ii) Value of imports}& & 150\\ \text{(iii) Value of exports}& & 450\\ \text{(iv) Unilateral transfers}& & 100\\ \text{(v) Balance of visible trade}& & 200\end{array}$

Q.

Budgetary deficit points to failure of the government to manage its budget. Defend or refute.

Q.

Explain the budgetary measures for the following objectives of government budget- setting up a production unit in the backward area.

OR

How government budget can be used for bringing price stability in the market?

Q.

Deficit budget refers to that situation in which government’s budget expenditure is:

1. None of the above

2. Less than its budget receipts

3. Equal to its budget receipts

4. More than its budget receipts

Q.

‘The fiscal deficit gives the borrowing requirement of the government’. Elucidate.

Q.

Which of the following statements is not true for the fiscal deficit?

1. represents the borrowing of the government

2. is the difference between total expenditure and total receipts of the government.

3. is the difference between total expenditure and total receipts other than borrowing.

4. increases the future liability of the government.

Q. Long answer type questions:
Define Government budget. Explain the various objectives of a government budget.

Q.

A budget is considered to be balanced when:

1. Total receipts > Total expenditures

2. Total receipts < Total expenditures

3. None of the above

4. Total receipts = Total expenditures

Q.

State any two objectives of government budget.

Q. Deficit budget refers to that situation in which the government’s budget expenditure is its budget receipts.

1. =
2. >
3. <
4. >/=

Q. What are the main components of budget?

Q. Short answer type questions:
What are the implications of a large revenue deficit? Give two measures to reduce this deficit.

Q. If the length of a second pendulum is increase by 2 percent, then in a day the pendulum (1) Loses 764s (2) Loses 924s (3) Gain 236s (4) Loses 864s

Q. What are the types of budget?

Q.

What is the impact of budgeting?

Q.

Describe the need for economic reforms.

Q.

What should the government do to reduce its revenue expenditure?

Q. The budget deficit is Rs 1, 000 crores and the total expenditure is Rs 2, 500 crores. The value of total receipts in the Government Budget is crores.

1. 1, 000
2. 2, 500
3. 1, 500
4. 3, 500

Q.

From the following data, find out Personal Disposal Income.

$\begin{array}{cc}& \\ \text{Items}& \text{Rs in crores}\\ \text{(i) Corporation tax}& 34\\ \text{(ii) Miscellaneous receipts of the goverment}& 12\\ \text{(iii) Undistributed profits of corporations}& 4\\ \text{(iv) Direct taxes}& 44\\ \text{(v) Private Income}& 2,748\end{array}$

Q. Rise in revenue deficit will always lead to higher fiscal deficit.

1. True
2. False

Q.

The government budget is a/an:

1. Annual statement

2. Five yearly statement

3. Half yearly statement

4. Weekly statement

Q. _________ means financing of a budget deficit by borrowing from the central bank or printing more money.

1. Fiscal adjustment
2. Budget financing
3. Deficit financing
4. Treasury management

Q.

The disadvantages for the government when it relies on external sources to fund a budget deficit are:

1. Increase in the expenditure

2. Chances of further deficit

3. Decrease in the revenue

4. No downside