Q100. In economic accounting, a fiscal deficit is regarded as which kind of variable?
[SSC MTS, 1 October 2024, Shift 1]
(A) Surplus concept
(B) Stock concept
(C) Margin concept
(D) Flow concept
Answer: (D) Flow concept
Explanation: A fiscal deficit is measured over a financial year, making it a flow. Public debt outstanding on a particular date is a stock. The distinction matters because one year’s deficit contributes to changes in the stock of government liabilities over time.
Q99. Which statements about India’s Union Budget are correct?
A. It reflects government priorities.
B. It reports financial performance.
C. It gives ministry-wise expenditure details.
[SSC MTS, 8 October 2024, Shift 3]
(A) A, B and C
(B) A and B only
(C) C only
(D) A only
Answer: (A) A, B and C
Explanation: The Union Budget communicates government policy objectives, presents estimates alongside earlier actuals or revisions and details spending by ministries and services. Together these elements enable legislative scrutiny and comparisons with policy promises. Hence the examination treats all three descriptions as correct.
Q98. Which expression represents the revenue deficit?
[SSC MTS, 5 November 2024, Shift 3]
(A) Primary deficit plus fiscal deficit
(B) Revenue expenditure plus revenue receipts
(C) Primary deficit minus fiscal deficit
(D) Revenue expenditure minus revenue receipts
Answer: (D) Revenue expenditure minus revenue receipts
Explanation: Revenue deficit equals revenue expenditure less revenue receipts. It indicates that recurrent revenues cannot finance all recurrent expenditures such as interest, salaries and subsidies. The concept differs from fiscal deficit, which also incorporates capital spending and non-debt capital receipts.
Q97. Which equation represents gross fiscal deficit in borrowing-source terms?
[SSC CGL Tier I, 24 July 2023, Shift 2]
(A) Domestic borrowing − RBI borrowing + foreign borrowing
(B) Domestic borrowing + RBI borrowing + foreign borrowing
(C) Domestic borrowing + RBI borrowing − foreign borrowing
(D) Domestic borrowing − RBI borrowing − foreign borrowing
Answer: (B) Domestic borrowing + RBI borrowing + foreign borrowing
Explanation: Gross fiscal deficit indicates the government’s financing requirement and can be matched with borrowing from domestic markets, the central bank and external creditors. Adding all relevant borrowing sources produces the correct financing-side expression rather than subtracting an individual source.
Q96. Which combination of expenditure and receipts does a budget show for the forthcoming financial year?
[SSC CGL Tier I, 21 July 2023, Shift 4]
(A) Estimated expenditure; actual receipts
(B) Actual expenditure; estimated receipts
(C) Actual expenditure; actual receipts
(D) Estimated expenditure; estimated receipts
Answer: (D) Estimated expenditure; estimated receipts
Explanation: A budget is a forward-looking financial plan containing estimated receipts and expenditure. Actual figures are known only after transactions occur and are reported through accounts and subsequent budget documents. Hence both figures in the statement are estimates.
Q95. Who chaired the Fifteenth Finance Commission of India?
[SSC CGL Tier I, 21 July 2023, Shift 4]
(A) Vijay Kelkar
(B) N. K. Singh
(C) Y. V. Reddy
(D) A. K. Chanda
Answer: (B) N. K. Singh
Explanation: N. K. Singh chaired the Fifteenth Finance Commission, which recommended intergovernmental transfers for 2021–26. Vijay Kelkar chaired the Thirteenth Commission and Y. V. Reddy the Fourteenth. Finance Commissions are constituted under Article 280.
Q94. Goods and Services Tax is an example of which category?
[SSC CGL Tier I, 20 July 2023, Shift 3]
(A) Compensation of employees
(B) Direct tax
(C) Transfer payment
(D) Indirect tax
Answer: (D) Indirect tax
Explanation: GST is imposed on taxable supplies and ultimately borne through purchases by consumers, making it an indirect tax. Direct taxes generally fall on income or wealth of the payer. Employee compensation and transfer payments are expenditure concepts, not taxes.
Q93. What is a principal function of the Finance Commissions of India?
[WBCS Mains (Polity and Economy) 2023]
(A) Evaluate only the Union government’s own financial condition
(B) Recommend distribution of tax revenue between Union and States
(C) Determine every annual budget allocation
(D) Lay down rates of all taxes
Answer: (B) Recommend distribution of tax revenue between Union and States
Explanation: The Finance Commission recommends distribution of divisible Union tax proceeds vertically and among States horizontally, plus certain grants. It does not itself enact tax rates or approve the Union Budget. Its recommendations are advisory and concern fiscal federalism.
Q92. After what regular interval is the Finance Commission constituted by the President?
[WBCS Mains (Polity and Economy) 2023]
(A) Ten years
(B) Five years
(C) Two years
(D) Twelve years
Answer: (B) Five years
Explanation: Article 280 calls for appointment of a Finance Commission every fifth year or earlier if the President thinks necessary. Its periodic recommendations address tax devolution and grants across the federal system, not a ten-year census cycle.
Q91. Regarding the EU Stability and Growth Pact, how many are true?
I. It constrains public budget deficits.
II. It requires sharing infrastructure.
III. It requires sharing technologies.
[UPSC CSE Prelims 2023]
(A) Only one
(B) Only two
(C) All three
(D) None
Answer: (A) Only one
Explanation: The Pact establishes fiscal-discipline rules for European Union members, including deficit and debt reference values. It does not create compulsory infrastructure-sharing or technology-sharing arrangements. Only the first description falls within its stated public-finance purpose.
