Q80. Which of the following equations is incorrect?
[SSC CHSL Tier I, 10 August 2023, Shift 3]
(A) Revenue receipts = net tax revenue minus non-tax revenue
(B) Fiscal deficit = total expenditure minus revenue receipts and non-debt capital receipts
(C) Primary deficit = fiscal deficit minus net interest liabilities
(D) Revenue deficit = revenue expenditure minus revenue receipts
Answer: (A) Revenue receipts = net tax revenue minus non-tax revenue
Explanation: Government revenue receipts combine tax revenue and non-tax revenue; they are not obtained by subtracting the latter. The remaining identities express standard deficit measures: the fiscal gap excludes borrowings, while the primary gap removes interest from the fiscal deficit.
Q79. Which is an example of a direct tax?
[SSC CHSL Tier I, 17 August 2023, Shift 2]
(A) Escheat
(B) Income tax
(C) Customs duty
(D) Goods and Services Tax
Answer: (B) Income tax
Explanation: Income tax is imposed on a taxpayer’s earnings and remitted directly according to the income-tax framework. Customs duty and GST are levies on goods or supplies and therefore indirect. Escheat involves property passing to the State without legal heirs and is not the named direct tax.
Q78. Which of the following statements is true?
[SSC CHSL Tier I, 3 August 2023, Shift 3]
(A) Income tax is an indirect tax
(B) GST is a direct tax
(C) Fees and fines are non-tax government receipts
(D) Government borrowing is a revenue receipt
Answer: (C) Fees and fines are non-tax government receipts
Explanation: Fees and fines are government income outside tax collections and normally enter non-tax revenue. Income tax is direct and GST indirect. Borrowing, by contrast, creates a repayment liability and thus belongs under capital receipts rather than recurring revenue receipts.
Q77. Under Finance Bill 2023, the Section 87A income threshold for eligible new-regime taxpayers rose from ₹5 lakh to what amount?
[SSC CHSL Tier I, 11 August 2023, Shift 3]
(A) ₹7 lakh
(B) ₹11 lakh
(C) ₹8 lakh
(D) ₹10 lakh
Answer: (A) ₹7 lakh
Explanation: The 2023 proposals increased the rebate eligibility ceiling to ₹7 lakh under the new income-tax regime, reducing the liability of qualifying individuals. The provision operates through a rebate against calculated tax rather than simply establishing a zero-rate slab up to the ceiling.
Q76. Why do proportional taxes reduce the autonomous expenditure multiplier?
[SSC CHSL Tier I, 9 August 2023, Shift 1]
(A) Taxes raise the marginal propensity to consume
(B) Marginal propensity to consume becomes irrelevant
(C) Tax rates become equal to consumption propensity
(D) Taxes lower the marginal propensity to spend out of gross income
Answer: (D) Taxes lower the marginal propensity to spend out of gross income
Explanation: With a proportional income tax, each additional rupee of gross income leaves less disposable income available for consumption. The effective response of spending to gross income therefore falls, reducing the multiplier. The underlying behavioural marginal propensity to consume disposable income need not itself change.
Q75. Which statements describe direct taxation?
I. It is levied on taxable income of persons and companies.
II. Gift tax is a form of direct tax.
[SSC CHSL Tier I (2022 cycle), 20 March 2023, Shift 4]
(A) Only I
(B) Neither I nor II
(C) Both I and II
(D) Only II
Answer: (C) Both I and II
Explanation: Direct taxes are imposed on the person or entity legally responsible for the tax, unlike consumption taxes that can be passed onward. Income and corporation taxes are examples. Gift tax has historically been treated as direct taxation, though India’s current rules differ from the former Gift-tax Act.
Q74. Which of the following is a fiscal-policy instrument rather than a monetary-policy instrument?
[SSC CHSL Tier I, 8 August 2023, Shift 3]
(A) Taxes
(B) Statutory Liquidity Ratio
(C) Cash Reserve Ratio
(D) Bank rate
Answer: (A) Taxes
Explanation: Taxes directly affect household disposable income, corporate incentives and public revenue, placing them within fiscal policy. SLR, CRR and the bank rate are monetary or banking instruments used by the central bank to influence credit conditions and financial-system liquidity.
Q73. Which statements are true?
A. Fiscal deficit is financed by borrowing.
B. Recovery of earlier government loans is revenue receipt.
[SSC CHSL Tier I, 4 August 2023, Shift 2]
(A) B only
(B) Neither A nor B
(C) Both A and B
(D) A only
Answer: (D) A only
Explanation: A fiscal deficit expresses the government’s borrowing requirement after non-debt resources are considered. Repayment of loans earlier advanced to others reduces a financial asset, so it is a non-debt capital receipt rather than current revenue. Only statement A is correct.
Q72. India’s financial year normally begins and ends on which dates?
[SSC CHSL Tier I, 14 August 2023, Shift 2]
(A) 1 April and 31 March
(B) 1 February and 31 January
(C) 1 July and 30 June
(D) 1 January and 31 December
Answer: (A) 1 April and 31 March
Explanation: Budget documents, tax accounts and fiscal statements ordinarily follow the financial year 1 April to 31 March. The period spans parts of two calendar years and is cited accordingly, such as FY 2023–24. This differs from the year used by some foreign governments.
Q71. If both the primary deficit and government interest payments double, how does the fiscal deficit change?
[SSC CHSL Tier I, 3 August 2023, Shift 4]
(A) It increases by 100%
(B) It increases by 200%
(C) It decreases by 50%
(D) It decreases by 100%
Answer: (A) It increases by 100%
Explanation: Fiscal deficit equals primary deficit plus interest payments. Doubling both components doubles their sum, assuming the quantities are measured consistently. A doubling means the final fiscal deficit is 200% of its initial level, or a 100% increase over the original.
