1. What article of the Indian Constitution mandates the presentation of the Union Budget?
A. Article 112
B. Article 123
C. Article 245
A. Article 112
2. What does the Revenue Budget primarily deal with?
A. Recurring income and expenses
B. Long-term investments
C. Defense equipment purchases
A. Recurring income and expenses
3. What does the Capital Budget focus on?
A. Day-to-day operations
B. Long-term asset creation
C. Payment of subsidies
B. Long-term asset creation
4. How does the government finance Capital Receipts?
A. Through taxes like GST
B. By collecting dividends from PSUs
C. By borrowing loans and disinvesting
C. By borrowing loans and disinvesting
5. Which of the following is a direct tax?
A. Goods and Services Tax (GST)
B. Customs Duty
C. Income Tax
C. Income Tax
6. Which tax is levied on the profits of companies?
A. Income Tax
B. Customs Duty
C. Corporate Tax
C. Corporate Tax
7. What does a Budget Deficit indicate?
A. Excess of total revenue over total expenditure
B. Excess of total expenditure over total revenue (excluding borrowings)
C. Excess of borrowing over revenue
B. Excess of total expenditure over total revenue (excluding borrowings)
8. What does a high fiscal deficit as a percentage of GDP indicate?
A. The economy is growing rapidly
B. The government has a surplus budget
C. The government is borrowing more relative to the economy's size
C. The government is borrowing more relative to the economy's size
9. What is the largest contributor to India's GDP?
A. Agriculture and rural development
B. Services sector
C. Manufacturing and industry
B. Services sector
10. What are direct taxes?
A. Taxes collected by intermediaries
B. Taxes on the sale of goods and services
C. Taxes levied on income or wealth paid directly to the government
C. Taxes levied on income or wealth paid directly to the government
11. Which of the following is a challenge in direct taxation?
A. High corporate tax rates
B. Simplified tax laws
C. Tax evasion and low compliance
C. Tax evasion and low compliance
12. What is revenue expenditure?
A. Spending on creating long-term assets
B. Spending for day-to-day operations and maintenance
C. Spending on infrastructure projects
B. Spending for day-to-day operations and maintenance
13. What are subsidies?
A. Financial support to improve government infrastructure
B. Financial support for private businesses
C. Financial support provided by the government to reduce the cost of essential goods and services
C. Financial support provided by the government to reduce the cost of essential goods and services
14. What is the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)?
A. A health insurance programme for rural families
B. A scheme for providing affordable housing
C. A programme that guarantees rural employment
C. A programme that guarantees rural employment
15. What is the purpose of the Fiscal Responsibility and Budget Management (FRBM) Act?
A. To set targets for fiscal deficit and public debt to ensure fiscal discipline
B. To regulate inflation rates in the economy
C. To encourage borrowing from foreign sources
A. To set targets for fiscal deficit and public debt to ensure fiscal discipline
16. What is the function of the Goods and Services Tax Network (GSTN)?
A. To manage the direct benefit transfer of subsidies
B. To provide government loans to businesses
C. To facilitate GST filings and collections efficiently
C. To facilitate GST filings and collections efficiently
17. What is the main purpose of the Production-Linked Incentive (PLI) scheme?
A. Provide subsidies for energy consumption
B. Simplify tax processes for industries
C. Offer incentives to sectors like electronics and textiles
C. Offer incentives to sectors like electronics and textiles
18. What is the main objective of the "Make in India in Defense" initiative?
A. Promote the domestic production of weapons and equipment
B. Increase imports of foreign defense products
C. Reduce the number of defense personnel
A. Promote the domestic production of weapons and equipment
19. What is the primary goal of disinvestment in public sector undertakings (PSUs)?
A. To increase government control over PSUs
B. To completely nationalise all PSUs
C. To raise funds by selling stakes in PSUs
C. To raise funds by selling stakes in PSUs
20. What is the primary goal of fiscal discipline in the Union Budget?
A. To increase government expenditure
B. To reduce tax collection
C. To manage government revenues and expenditures responsibly
C. To manage government revenues and expenditures responsibly
- Union Budget 2025