Fiscal Policy and Revenue One Liner Questions & Answers
| Questions | Answers | |
| 1 | When was gender budgeting initiated in India? | Union Budget, 2005-06 |
| 2 | Along with the Budget, the Finance Minister also places other documents before the Parliament which includes ‘The Macro Economic Framework Statement’. The aforesaid document is presented because this is mandated by – | Provisions of the Fiscal Responsibility and Budget Management Act, 2003 |
| 3 | The ‘Goods and Services Tax’ was proposed by a task force, whose President was – | Vijay Kelkar |
| 4 | What kind of tax is G.S.T.? | Indirect Tax |
| 5 | GST (Goods and Services Tax) is now proposed to be introduced in India from – | April 01, 2012 |
| 6 | What has been kept under the purview of Goods and Services Tax (GST)? | Ghee |
| 7 | The term ‘Revenue Neutral Rate’ was in the news recently is related to – | Goods and Service Tax (GST) |
| 8 | The Saksham project approved by Govt. of India is related to – | A new indirect tax network |
| 9 | In India, which formulates the fiscal policy? | Ministry of Finance |
| 10 | Long-term fiscal policy was announced by which finance minister of India? | V.P. Singh |
| 11 | The controlling authority of government expenditure is – | The Ministry of Finance |
| 12 | The revenue estimates of the Budget in India are prepared by – | The Ministry of Finance |
| 13 | ‘Budget’ is an instrument of – | Fiscal policy of the government |
| 14 | In which countries, zero-based budgeting was first adopted? | U.S.A. |
| 15 | In the Union Budgets in India, is the largest in amount? | Revenue expenditure |
| 16 | In the Union Budget the largest item of revenue expenditure is – | Interest Payment |
| 17 | Fiscal deficit/GDP ratio has been maximum in the financial year – | 2011-2012 |
| 18 | The present fiscal deficit of States has touched a record of – | 1,00,000 crore |
| 19 | As compared to revenue deficit, fiscal deficit will always remain – | Higher |
| 20 | Fiscal deficit in the Union budget means – |
The sum of budgetary deficit and net increase in internal and external borrowings
|
| 21 | If interest payment is added to the primary deficit, it is equivalent to – | Fiscal deficit |
| 22 | Revenue deficit in India implies that – |
The Indian Government needs to borrow in order to finance its expenses which do not create capital assets
|
| 23 | After deducting grants for the creation of capital assets from revenue deficit, we arrive at – | Effective Revenue Deficit |
| 24 | A larger part of the fiscal deficit in Union Government Budget is filled by – | Domestic borrowings |
| 25 | Deficit financing creates additional paper currency to fill the gap between expenditure and revenue. This device aims at economic development. But if it fails, it generates – | Inflation |
| 26 | What is the effect of deficit financing on the economy? | Increase in money supply |
| 27 | In India, deficit financing is used to raise resources for – | Economic development |
| 28 | With respect to the procedure of Budget in the Parliament, “the amount of demand be reduced to Re 1” is called – | Policy Cut-Motion |
| 29 | Vote on Account is meant for – |
Appropriating funds pending passing of the budget
|
| 30 | The Finance Ministry (Government of India) has introduced the concept of ‘Outcome-Budget’ in 2005. Under this, the monitoring of the outcomes will be the responsibility of – |
Finance Ministry and Planning Commission jointly
|
| 31 | The concept of Performance Budget has been borrowed from – | U.S.A. |
| 32 | Ad hoc Treasury bill system of meeting budget deficit in India was abolished on – | 31st March, 1997 |
| 33 | The Indian Parliament exercises control of the audit of the Budget through its – | Public Accounts Committee |
| 34 | Fiscal Responsibility and Budget Management Act was enacted in India in the year – | 2003 |
| 35 | Fiscal Responsibility and Budget Management Act, 2003 was adopted in Rajasthan with objectives to – |
Ensure financial discipline in Government
|
| 36 | The Railway Budget 2013-14 has approved to introduction of a new hyper luxury class. It is to be called – | Anubhuti |
| 37 | Who had suggested the imposition of ‘expenditure tax’ in India for the first time? | Kaldor |
| 38 | Tax on the sale of inherited property is – | Capital Gain Tax |
| 39 | A redistribution of income in a country can be best brought about through – |
Progressive taxation combined with progressive expenditure
|
| 40 | The two largest sources of tax revenue to the Central Government of India are – | Union excise duty and Custom duty |
| 41 | Why the indirect taxes termed regressive taxing mechanisms? |
They are charged the same rates for all income groups
|
| 42 | Which is not a direct tax in India? | Sales tax |
| 43 | Corporation tax is levied on – | Income of Company |
| 44 | The Minimum Alternative Tax (MAT) was introduced in the Budget of the Government of India for the year – | 1996-97 |
| 45 | MODVAT is related to – | Excise duty |
| 46 | Value Added Tax was first introduced in India in – | 2005 |
| 47 | In which state in India was added Tax the first time? | Haryana |
| 48 | In which States/Union territories Sales tax is not levied? | Andaman & Nicobar and Lakshadweep |
| 49 | When was the wealth tax first introduced in India? | 1957 |
| 50 | Service tax was introduced in India on the recommendation of – | Raja J. Chelliah Committee |
| 51 | Income tax in India was introduced by – | James Wilson |
| 52 | Which of the following taxes does not directly increase the price of a commodity to buyers – | Income tax |
| 53 | The tax on import and export is known as – | Custom duty |
| 54 | What is Excise duty? | Indirect tax |
| 55 | The sales tax you pay while purchasing toothpaste is a – |
Tax imposed and collected by the State Government
|
| 56 | Excise Duty on liquor is imposed by – | State Governments |
| 57 | In which budget, the Commodity Transaction Tax (CTT) was introduced in the Budget of India? | 2013-14 |
| 58 | The main source of funds for the National Highway Authority of India is – | Cess |
| 59 | The Voluntary Disclosure of Income Scheme, 1997 was launched by the Finance Ministry with effect from – | 1 July, 1997 |
| 60 | Generally after every five years, the Finance Commission is appointed in India to – |
Determine the share of States in the Central grants and revenue of the Union
|
| 61 | Under which one of the following Articles is the formation of the Finance Commission laid down? | Article 280 |
| 62 | The distribution of finances between the Centre and States is done on the recommendation of – | Finance Commission |
| 63 | The primary function of the Finance Commission in India is to – |
Distribute revenue between the Centre and the States
|
| 64 | The primary duty of the Finance Commission of India is – |
To give the recommendations on distribution of tax revenue between the Union and States
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| 65 | The recommendation of the 14th Finance Commission to increase the share of net proceeds of union taxes between center to states has been fixed at – | 42 percent |
| 66 | Who was the Chairman of the 14th Finance Commission? | Dr. Y.V. Reddy |
| 67 | Who has been appointed as the Chairman of the 13th Finance Commission on 14 November 2007? | Dr. Vijay L. Kelkar |
| 68 | The period of recommendations made by Thirteenth Finance Commission is – | 2010-15 |
| 69 | Who is the Chairman of the 10th Finance Commission? | K.C. Pant |
| 70 | Who was the Chairman of the 12th Finance Commission? | C. Rangarajan |
| 71 | The extent of money transfer to the States out of a sharable pool of tax collection according to the 12th Finance Commission has been fixed at – | 30.5 percent |
| 72 | 11th Finance Commission has recommended that in the tax revenue collected by the Union, the shareable part of States will be – | 29.50% |
| 73 | According to the Tenth Finance Commission, the share of resources to be transferred to States from the divisible pool will be – | 29% |
| 74 | Recommendations of the Kelkar Task Force relate to – | Taxes |
| 75 | The Committee which has recommended the abolition of Tax Rebates under Section 88 of the Income Tax Act of India, is – | Kelkar Committee |
| 76 | Recent tax reforms in India have been undertaken on the recommendations of the committee headed by – | R. J. Chelliah |
| 77 | Chelliah Committee is related to – | Reforms in direct and indirect tax |
| 78 | A PAN has initially a five-alphabet series like AFZPK 7190K. Here P stands for – | Individual |
| 79 | In the year 2001, the Prime Minister announced a five-year excise duty holiday for industries in – | Earthquake ravaged Kutch district |
| 80 | The Union Budget 2000 awarded a Tax Holiday for the North-Eastern Region to promote industrialization for – | 10 years |