Q110. What constitutes a revenue deficit in a government budget?
[SSC CHSL Tier I, 11 July 2024, Shift 3]
(A) Expenditure exceeding revenue, excluding interest payments
(B) Revenue exceeding expenditure, excluding interest payments
(C) Revenue exceeding expenditure, including interest payments
(D) Revenue expenditure exceeding revenue receipts, including interest payments
Answer: (D) Revenue expenditure exceeding revenue receipts, including interest payments
Explanation: Revenue deficit equals revenue expenditure minus revenue receipts. Revenue expenditure includes regular spending such as salaries, pensions, subsidies and interest. Therefore interest payments are not excluded in this measure. A positive deficit suggests that current receipts fail to cover recurring commitments.
Q109. What is a principal objective of the Fiscal Responsibility and Budget Management Act, 2003?
[SSC CHSL Tier I, 2 July 2024, Shift 2]
(A) Reducing the fiscal deficit
(B) Reducing subsidies alone
(C) Increasing excise duty
(D) Increasing exports
Answer: (A) Reducing the fiscal deficit
Explanation: The FRBM legislation seeks prudent deficit and debt management along with transparency in government finances. Lowering unsustainable fiscal shortfalls is central to that purpose. It does not prescribe excise-tax increases or export growth as its sole or direct statutory objective.
Q108. Which Article of the Constitution deals with the Finance Commission of India?
[SSC GD Constable, 21 February 2024, Shift 1]
(A) Article 280
(B) Article 290
(C) Article 260
(D) Article 270
Answer: (A) Article 280
Explanation: Article 280 mandates the periodic constitution of the Finance Commission by the President. Its recommendations address tax devolution, grants and local-body fiscal support. Article 270, by contrast, concerns the sharing of certain taxes, not the creation of the Commission itself.
Q107. The Finance Commission of India consists of a chairperson and how many other members?
[SSC GD Constable, 5 March 2024, Shift 1]
(A) Six
(B) Three
(C) Ten
(D) Four
Answer: (D) Four
Explanation: The Finance Commission comprises a chairperson and four other members appointed by the President. Parliament prescribes qualifications and selection requirements. This five-person structure enables expertise in public administration, economics and fiscal transfers, and differs from membership of the GST Council.
Q106. What is a principal purpose of the government budget in the economy?
[SSC GD Constable, 1 March 2024, Shift 3]
(A) Measuring inflation directly
(B) Promoting international trade alone
(C) Allocating available resources efficiently
(D) Calculating GDP directly
Answer: (C) Allocating available resources efficiently
Explanation: A budget authorises and prioritises spending on public services, infrastructure and transfers, using revenue and borrowing resources. It also influences economic stability and distribution. Inflation and GDP are measured using separate statistical systems rather than being calculated by the budget itself.
Q105. The government statement showing expected receipts and expenditure for the upcoming financial year is called what?
[SSC GD Constable, 26 February 2024, Shift 3]
(A) Policy
(B) Revenue
(C) Plan
(D) Budget
Answer: (D) Budget
Explanation: The government budget summarises anticipated receipts, expenditure and related fiscal measures for the coming year. In constitutional terminology, the Union’s Annual Financial Statement is submitted under Article 112. Its forward-looking estimates should be distinguished from actual accounts of the preceding year.
Q104. In a government budget, what does fiscal deficit represent?
[SSC GD Constable, 6 March 2024, Shift 2]
(A) A surplus of funds available for spending
(B) The full outstanding stock of public debt
(C) The shortfall of receipts excluding borrowings against expenditure
(D) The amount spent on defence
Answer: (C) The shortfall of receipts excluding borrowings against expenditure
Explanation: Fiscal deficit measures expenditure exceeding revenue receipts plus non-debt capital receipts, thereby approximating the government’s borrowing requirement for the period. Outstanding public debt is a stock accumulated over time and is not identical to a single year’s deficit.
Q103. How many priorities were identified under the Saptarishi framework of Union Budget 2023–24?
[SSC GD Constable, 23 February 2024, Shift 2]
(A) Seven
(B) Five
(C) Six
(D) Nine
Answer: (A) Seven
Explanation: The 2023–24 Budget described seven Saptarishi priorities, encompassing inclusive development, reaching the last mile, infrastructure, unleashing potential, green growth, youth and the financial sector. These themes organised budget policy commitments and should not be confused with seven individual expenditure accounts.
Q102. What is the standard financial year for government budgeting in India?
[SSC GD Constable, 23 February 2024, Shift 1]
(A) 1 October to 30 September
(B) 1 April to 31 March
(C) 1 January to 31 December
(D) 1 July to 30 June
Answer: (B) 1 April to 31 March
Explanation: India’s government financial year begins on 1 April and ends on 31 March of the following calendar year. Annual revenue, expenditure, fiscal-deficit estimates and direct-tax assessments are ordinarily organised around this period, rather than the January-to-December calendar year.
Q101. About revenue receipts, consider:
A. They do not create a repayment claim against government.
B. They comprise tax and non-tax receipts.
Which is correct?
[SSC GD Constable, 26 February 2024, Shift 1]
(A) Both A and B
(B) Neither A nor B
(C) A only
(D) B only
Answer: (A) Both A and B
Explanation: Revenue receipts do not increase repayment liabilities or result in disposal of government assets. They include taxes, fees, dividends and some grants. Borrowing proceeds, by contrast, are capital receipts because lenders acquire a claim against the government for repayment.
