Q130. In which financial year was the concept of Effective Revenue Deficit introduced in government budgeting?
[RRB NTPC Graduate CBT-I, 10 June 2025, Shift 2]
(A) 2011–12
(B) 2003–04
(C) 2015–16
(D) 2008–09
Answer: (A) 2011–12
Explanation: Effective revenue deficit adjusts revenue deficit by excluding grants earmarked to create capital assets. The indicator was introduced in the 2011–12 budget framework to distinguish revenue expenditure that supports asset formation from expenditure for routine consumption or operations.
Q129. Which legislation was enacted in 2003 to institutionalise fiscal discipline and address deficits?
[RRB NTPC Undergraduate CBT-I, 19 August 2025, Shift 2]
(A) Companies Act
(B) Banking Regulation Act
(C) Foreign Exchange Management Act
(D) Fiscal Responsibility and Budget Management Act
Answer: (D) Fiscal Responsibility and Budget Management Act
Explanation: The FRBM Act of 2003 created a statutory framework for fiscal transparency, deficit management and government borrowing discipline. The Companies Act governs corporate affairs, banking legislation regulates banks and FEMA governs specified foreign-exchange matters. None of those alternatives is primarily the fiscal-deficit statute.
Q128. Which of these is NOT a direct tax?
[RRB NTPC Graduate CBT-II, 13 October 2025, Shift 1]
(A) Tax on capital gains
(B) Value Added Tax
(C) Corporation tax
(D) Income tax
Answer: (B) Value Added Tax
Explanation: VAT is levied through transactions involving goods and can be passed through the supply chain, so it is an indirect tax. Income tax, corporation tax and capital-gains taxation address earnings or gains attributable to the taxpayer and are classified as direct taxes.
Q127. For how many additional years did Budget 2025–26 extend the startup-incorporation deadline for claiming specified income-tax benefits?
[RRB NTPC Graduate CBT-I, 19 June 2025, Shift 2]
(A) Five years
(B) Six years
(C) Seven years
(D) Four years
Answer: (A) Five years
Explanation: The Budget extended the relevant incorporation cut-off for tax benefits under Section 80-IAC by five years. The provision supports qualifying start-ups by allowing a specified profit deduction subject to eligibility conditions. The extension changes the cut-off, not the definition of taxable profit.
Q126. Which tax was introduced in India in July 2017 to replace several central and state indirect taxes?
[RRB NTPC Undergraduate CBT-I, 1 September 2025, Shift 3]
(A) Income tax
(B) Excise duty
(C) Goods and Services Tax
(D) Sales tax
Answer: (C) Goods and Services Tax
Explanation: GST began on 1 July 2017, bringing numerous indirect levies into a common value-added framework. Input tax credits reduce cascading, while the GST Council coordinates rates and administrative arrangements. Income tax remained a separate direct-tax levy rather than being replaced by GST.
Q125. Which direct-tax collection had increased according to the February 2023 budget comparison cited in the question?
[SSC CGL Tier I, 11 September 2024, Shift 1]
(A) Personal income tax
(B) Octroi
(C) Corporate tax
(D) Commercial tax
Answer: (A) Personal income tax
Explanation: The question identified personal income-tax collection as having risen in the specified budget comparison. Personal income tax is levied directly on eligible earners, whereas octroi and several commercial levies are indirect or local charges and are not equivalent categories.
Q124. Which is a non-tax revenue source for the government?
[SSC CGL Tier I, 13 September 2024, Shift 3]
(A) Fees and fines
(B) Personal income tax
(C) Corporate income tax
(D) Value-added tax
Answer: (A) Fees and fines
Explanation: Fees for government services and penalties imposed under law are non-tax receipts. Income tax, corporation tax and VAT are tax receipts. Non-tax income can also include dividends, profits and interest earned on government lending.
Q123. Which Constitutional Amendment established the framework for a Goods and Services Tax Council?
[SSC CGL Tier I, 25 September 2024, Shift 3]
(A) 102nd Amendment
(B) 100th Amendment
(C) 101st Amendment
(D) 103rd Amendment
Answer: (C) 101st Amendment
Explanation: The Constitution (One Hundred and First Amendment) Act, 2016 inserted Article 279A for the GST Council and enabled the GST framework. The Council coordinates recommendations on rates and related matters; GST was implemented from July 2017.
Q122. When is a government budget described as a deficit budget?
[SSC CGL Tier I, 26 September 2024, Shift 2]
(A) When both receipts and spending are zero
(B) When receipts exceed spending
(C) When spending equals receipts
(D) When spending exceeds receipts
Answer: (D) When spending exceeds receipts
Explanation: In elementary budget classification, a deficit arises when estimated government outgo exceeds incoming receipts. A surplus reverses the inequality, while equality defines a balanced budget. More specific concepts such as fiscal or revenue deficit apply particular exclusions and adjustments.
Q121. From which Union Budget year was the separate practice of showing a budget deficit discontinued?
[SSC GD Constable, 5 March 2024, Shift 1]
(A) 1996–97
(B) 1995–96
(C) 1997–98
(D) 1992–93
Answer: (C) 1997–98
Explanation: India discontinued separately presenting the traditional budget-deficit measure from the 1997–98 Budget, placing more emphasis on fiscal deficit as the indicator of overall borrowing need. Modern deficit measures show the financing gap more consistently than the earlier budget-deficit presentation.
