Q1.

How does the revised fiscal deficit in Budget

2023-24 compare to the 2022-23?

Which of the following is Correct?

A) Decreased by 1.3%
B) Decreased by 0.5%
C) Remained unchanged
D) Increased by 1.8%
 Ans: (B)
Explanation:- The Fiscal Deficit in FY
2022-23 was 6.4% of the GDP, where
as in FY 2023-24 it reduced by 0.5% to
5.9%.
Q2. Arrange the following ministry in ascending order in terms
of Allocation of money in Budget 2024-25.

1. Ministry of Home Affairs

2. Ministry of Rural Development
3. Ministry of Defence
4. Ministry of Railways
Which of the following is Correct?
a) 4-2-1-3
b) 2-4-1-3
c) 1-2-3-4
d) 2-1-4-3
 Ans: (D)
1. Ministry of Home Affairs - ₹2.03 lakh crore
2. Ministry of Rural Development - ₹1.77 lakh cr.
3. Ministry of Defence - ₹6.2 lakh crore
4. Ministry of Railways - ₹2.55 lakh crore
Q3. Examine the following statements, and choose the option that suits the
best.

Statement 1: Public provision means that they are financed through the
budget and can be used without any direct payment.
Statement 2: When goods are produced directly by the government it is
called public production.

A. Statement - 1 is true, statement -2 is true; statement -2 is the correct

explanation for statement -1.
B. Statement-1 is true, statement -2 is true; statement -2 is NOT the correct
explanation for statement - 1.
C. Statement -1 is true, statement -2 is false.
D. Statement -1 is false, statement -2 is true.
 Ans: (B)
Both the statements are true but
statement -2 is NOT the correct
explanation for statement-1.
Q4. Which of the following are considered as Source of Deficit
Financing?
1. Short Term Borrowing
2. Securities Against Small Savings
3. External Debt
4. State Provident Funds
5. Drawdown of Cash Balance
Which of the following is Correct?
a) Only two
b) Only three
c) Only four
d) All Five
 Ans: (D)
● All five statements are true.
● Statement 1, short-term borrowing is a finance taken by government
from RBI for a temporary period.
● Statement 2, security against small savings means, government
withdrawing cash balance from the government Treasury.
● Statement 3, when government taken the sum of money from foreign
institutions is called external debt.
● Statement 4, State Provident fund means, when government draw the
money from that account where employer’s pensions managed.
● Statement 5, Drawdown of cash balance means, issuing new
currency by the government. In addition to the currency issued by the
central bank.
Q5. Consider the following statements
1. If Capital receipts greater than capital expenditure, it means
capital side of balance sheet is in Deficit.
2. If Revenue expenditure greater than Revenue receipts, means
revenue side of balance sheet in surplus.
3. The sum of Capital Expenditure and Grant in Aid for creation of
capital assets are known as Effective capital expenditure.
Which of the following is/are Correct?
a) Only one
b) Only two
c) Only three
d) None
 Ans: (A)
1. First statement is wrong, If Capital receipts greater than
capital expenditure, it means capital side of balance
sheet is in surplus.

2. Second statement is wrong, If Revenue expenditure

greater than Revenue receipts, means revenue side of
balance sheet in deficit.

3. Third statment is correct.

Q6. Which of the following statement is correct about
'Budget'?
1. It is a projection of financial status for an upcoming
period, outlining planned expenditures and the
corresponding methods of financing.
2. The Constitution refers to the budget as an 'annual
financial statement' in Article 111.

Which of the following are correct?

a) Only 1
b) Only 2
c) Both a & b
d) None of the above
 Ans: (A)
1. First statment is correct.
2. Second statement is wrong,The Budget,
which is a statement of the estimated receipts
and expenditure of the government for a
particular year, is referred to in Article 112 of
the Indian Constitution as the annual financial
statement.
Q7. Consider the following statements on Union Budget
1. The word 'Budget' is not mentioned in the Constitution.
2. The Lok Sabha cannot vote on the expenditure charged
on the Consolidated Fund of India, but can only discuss it.

Which of the above statements is/are correct?

a) Only 1
b) Only 2
c) Both
d) None
 Ans: (C)
● The Union Budget of India is referred to as
the Annual financial statement in the Article
112 of the Constitution of India.
● It is presented each year on the last working
day of February by the Finance Minister of
India in Parliament.
Q8. Under the Union Budget, what does the
fiscal deficit refer to?

a) Taxes shortfall
b) Disinvestment shortfall
c) Disinvestment requirement
d) Borrowings requirement
 Ans: (D)
● A fiscal deficit represents the overall
borrowings required by a government for a
fiscal (financial) year.
Q9. What is an interim budget?

a) A budget presented during an economic crisis.

b) A budget that outlines the government's long-term
financial plan.
c) A temporary budget presented in an election year
when a new government is likely to take charge.
d) A budget exclusively focused on defense
expenditures.
 Ans [C]

● The Interim Budget acts as a framework

for handling temporary expenditures over
a brief period, typically spanning a few
months, until a new government assumes
office later in the fiscal year.
Q10. Consider the following statements on Budget 2024-
25
1. Foreign Direct Investment doubled in last 10 years.
2. GST collection is more than Direct Tax collection.
3. Capital receipts less in FY 2023-24 in comparison of
FY 2022-23.

Which of the following is not correct?

a) Only one
b) Only two
c) All three
d) None
 Ans: (D)
All three statements are correct.
1. FDI Inflow doubled from 298 USD Billion during
2005-14 to 596 USD Billion during 2014-23
2. GST - ₹ 16.69 lakh Crores > Direct Tax - ₹
15.95 lakh crore
3. Capital receipts less in FY 2023-24 in comparison
of FY 2022-23 but capital expenditure is more in
FY 2023-24 in comparison of FY 2022-23.
Q11. Consider the following Statements on budget 2024-25?
1. Coal gasification & liquefaction capacity of 100 MT to be set
up by 2030.
2. Government will also provide vaccination to 9 to 14 age
Children to prevent the cervical cancer.
3. Nano-DAP is related to agro climatic zones.

Which of the following is correct?

a) Only one
b) Only two
c) All three
d) None
 Ans: (B)
1. First statment is correct.
2. Second statement is wrong, Government
will also provide vaccination to 9 to 14 age
girls to prevent the cervical cancer.
3. Third statment is correct.
Q12. Which of the following scheme correctly Matched?
1) PM-SVANidhi Street Vendors
2) PM-Vishwakarma Tribal groups

3) e-NAM Agriculture
4) PM-JANMAN Artisans

Which of the following is correct?

a) 1&2
b) 1,3,4
c) 1&4
d) 2,3,4
 Ans: (C)
1) PM-SVANidhi Street Vendors

2) PM-Vishwakarma Artisans

3) e-NAM Agriculture

4) PM-JANMAN Tribal groups

Q13. Which of these budgets suits
developing economies including India?

a) Deficit budget
b) Surplus budget
c) Balanced budget
d) None of these
 Answer – A.

● For future prosperity, emerging nations must

spend more on infrastructure as well as
administration.
● As a result, the government’s total
expenditures will always be more than its
total earnings.
Q14. Which category accounts for the highest
expenditure in the Budget for 2024-25?

(a) Pension

(b) Interest

(c) Defence

(d) Grants in Aid for creation of capital assets

 Ans: (b)

● With ₹11,90,440 crore allocated,

managing interest payments
remains a critical component of
fiscal planning.
Q15. Mention the statement which is true among the
following

1. Fiscal deficit refers to the difference between total

receipts and total expenditure.
2. Primary deficit refers to the difference between
interest payments and revenue deficit.
3. Primary deficit refers to the difference between
interest payments and total receipts.
4. Fiscal deficit refers to the sum of interest payments
and primary deficit.
 Ans: (d)
● Fiscal deficit = Expenditure > Income.
● Fiscal deficit = Primary deficit + interest payments.
● Primary deficit = Fiscal deficit - interest payments.