Fiscal policy

Question 1

What are the objectives of Governmentl Budget?

Answer 1

Resource allocation
Uplift of downtrodden
Creating Welfare programmes
Ensureing Fair distribution of income
Economic stability

Question 2

government Budget is prepared by

Answer 2

Budget division in Dpt., of Economic affair under Min of finance

Question 3

When will budget bill be introduced in parliment?

Answer 3

Feb 1st

Comes into effect on April 1st

Question 4

What are the tools of Fiscal Policy?

Answer 4

1) Taxation

2) govt. Spending

Question 5

In which taxation system tax slab increases with increase in income of people?

Answer 5

Progressive taxation

Higher income group has to pay higher percentage of tax

Reduces income inequalities

People get disinterested to work hard

Question 6

In which taxation system all people have same tax burden irrespective of their income level?

Answer 6

Progressive taxation

Same tax slab for all people
Inequalities in income of people remains same

Question 7

Regressive taxation system

Answer 7

Tax reduces with increase in income

Lower income people need to pay higher taxes

Question 8

Which taxes are regressive in nature?

Answer 8

Indirect taxes causes low income people to pay higher percent of tax