Two Flashcards
1
Q
List the functions of a government in an economy.
A
Allocation, Distribution and Stabilization
2
Q
Which type of goods cannot be provided by the market mechanism?
A
Public Goods
3
Q
The benefits of which type of goods are available to all?
A
Public Goods
4
Q
In which type of goods can a person be excluded from the benefits if he does not pay for the good?
A
Private Goods
5
Q
Public Goods suffer from which problem?
A
Free Rider Problem
6
Q
The government attempts to bring out a Distribution of income which is considered fair by the society. Which function of the government is this?
A
Distribution
7
Q
The government affects the personal disposable income of households through?
A
Transfer payments and collecting taxes
8
Q
Overall level of employment and prices in an economy depend upon the?
A
aggregate level of demand
9
Q
Through the Stabilization function, the government tries to raise/reign in the level of?
A
Aggregate Demand
10
Q
Which article of the Constitution mandates the presentation of an annual financial statement before the Parliament?
A
Art 112
11
Q
Which article of the Constitution mandates the presentation of an annual financial statement before the Legislature by the State Government?
A
Art 202
12
Q
The budget is a statement of?
A
The account of the government
13
Q
Railway budget was separated from the general budget in _____ on the recommendations of ______.
A
1921, Acworth Committee
14
Q
What are the two major components of the General Budget?
A
Revenue budget and capital budget
15
Q
List the 3 sets of figures contained in the General Budget.
A
Actual Figure of previous year. Budget and revised figure for the current year. Budget estimate for the upcoming year.
16
Q
Budget estimate for the upcoming year is based on?
A
previous two year estimates
17
Q
List the funds into which the estimated receipts and expenditures of the government are made?
A
Consolidated Fund of India, Public Accounts of India, Contingency Fund of India
18
Q
Which article of the Constitution defines the Consolidated Fund of India?
A
Art 266(1)
19
Q
All receipts received by the GOI are put into the?
A
Consolidated Fund of India
20
Q
All loans raised by the GOI by issue of Treasury bills, loans or ways and means advances are put into?
A
Consolidated Fund of India
21
Q
All moneys received by the GOI in repayment of loans are put into?
A
Consolidated Fund of India
22
Q
All expenses incurred by the GOI in repayment of loans given to the State Government/UT is spent from which Fund?
A
Consolidated Fund of India
23
Q
The Public Account of India is defined in which article of the Constitution?
A
Art 266(2)
24
Q
All public money received other than those included in the Consolidated Fund of India are held in?
A
Public Account of India
25
Money raised by the GOI through small saving schemes, provident fund schemes is put into the?
Public Account of India
26
The Public Account of India contains both receipts and liabilities. True or False?
True
27
Which article of the Constitution defines the Contingency Fund of India?
Art 267
28
The Contingency Fund of India is held at the disposal of?
The President
29
The Contingency Fund of India is used to meet?
unforeseen expenditure
30
The President can meet unforeseen expenditure from the Contingency Fund of India without the approval of the Parliament. True or False.
True. The Parliament can approve the expenditure at a later date.
31
Revenue is a subset of _____.
Receipts
32
Revenue is a ______ transaction.
one way
33
Salary received by a person is included in?
Revenue
34
______ include both one way and two way transactions.
Receipts
35
Loan taken by a person is included in?
Receipts. Because it has to be repaid by him.
36
Salary received by a person is both revenue and ______.
receipt
37
The ______ shows the current receipts of the government and the expenditure that can be met from these receipts.
Revenue Budget
38
Those receipts which need not be paid again to the payee by the GOI are called?
Revenue Receipts
39
What are three divisions of Revenue Receipts?
Tax Revenues, Non Tax Revenues and Other Non Tax Receipts
40
______ consist of the proceeds of the taxes and other duties levied by the central government.
Tax Revenues
41
Tax Revenues comprise of?
Direct Taxes, Indirect Taxes and Taxes of Union Territories
42
Taxes which directly fall on firms and individuals are called?
Direct Taxes
43
Examples of direct taxes are?
Income Tax, Corporation Tax, Wealth Tax, Gift Tax.
44
Which Taxes are called Paper Taxes?
Wealth and Gift Taxes
45
Examples of Indirect Taxes are?
Excise Tax, Customs duties and Service Tax
46
Duty levied on goods produced within the country is called?
Excise duty
47
Taxes imposed in goods imported into and exported out of India are called?
Customs Duties
48
Tax on services consumed by individuals and firms is called?
Service Tax
49
Non Tax Revenues consist of?
Interest receipts and dividends and profits
50
Interest earned on account of loans given by the GOI is called?
Interest Receipt
51
Profit earned from the circulation of currency and coins falls under which section of the Budget?
Other Non Tax Receipts
52
Profit is the difference between the _____ and the cost incurred to produce the currency note or coin.
face value
53
Cash Grants-in-aid received by the GOI from foreign countries and international organizations fall under which section of the Budget?
Other Non Tax Receipts
54
Which expenditure will not yield any revenue in the future?
Revenue Expenditure
55
Which expenditure is a one-way payment?
Revenue Expenditure
56
Which expenditure consists of all those expenditures which do not result in creation of physical or financial assets?
Revenue Expenditure
57
The Capital Account is an account if the ______ of the GOI.
Assets and Liabilities
58
Capital receipts are essentially _____ transactions.
two-way
59
Loans raised by the GOI from the public, market borrowings fall under?
Capital Receipts
60
Borrowings by the GOI from RBI and SCB and other financial institutions through the sale of G-Secs, T-Bills fall under?
Capital Receipts
61
Loans received from foreign governments and international organizations fall under?
Capital Receipts
62
Small Savings and Provident Funds are listed in which section of the Budget?
Capital Receipts
63
Net receipts received from the sale of share in PSUs falls under?
Capital Receipts
64
Which expenditure made by the GOI creates permanent assets and yields periodical income?
Capital Expenditure
65
Expenditure on the acquisition of land, buildings, machinery, equipment falls under?
Capital Expenditure
66
Loans and advances by the GOI to the States and UT falls under?
Capital Expenditure
67
Expand FRBM
Fiscal Responsibility and Budget Management
68
The FRBM Act was enacted in?
2003
69
List the three policy statements mandated by the FRBM Act to be presented along with the budget.
Medium Term Fiscal Policy Statement. Fiscal Policy Strategy Statement. Macroeconomic Framework Statement.
70
Which policy statement mandated by the FRBM Act sets a 3 year rolling target for specific fiscal indicators
Medium Term Fiscal Policy Statement
71
Which policy statement mandated by the FRBM Act sets the priorities of the GOI in the fiscal area?
fiscal policy strategy statement
72
Which Policy Statement mandated by the FRBM Act examines whether revenue expenditure can be finance through revenue receipts on a sustainable basis?
medium term fiscal policy statement
73
which policy statement mandated by the fiscal responsibility and budget management act examines current policies and justifies any deviation in fiscal policy measures?
fiscal policy strategy statement
74
which policy statement mandated by the fiscal responsibility and budget management act assesses the prospects of the economy with respect to GDP growth rate fiscal balance of the government and external balance?
macroeconomic Framework statement
75
the gap between receipts and expenditure is called
deficit
76
the difference between total expenditure and total receipts is called
budget deficit
77
budget deficit is always
zero
78
the excess of government revenue expenditure over revenue receipts is called
revenue deficit
79
Which deficit includes only such transactions that affect the current income and expenditure of the government?
revenue deficit
80
what forces the government to eventually cut revenue expenditure
revenue deficit
81
reduction in productive capital expenditure or welfare expenditure results in
lower growth and adverse welfare implications
82
the difference between government's total expenditure and its total receipts excluding borrowings and other liabilities is called
fiscal deficit
83
the amount of borrowings and other liabilities of the government is called
fiscal deficit
84
those receipts which are not borrowings and therefore do not give rise to debt are called?
non debt creating capital receipts
85
recovery of loans and proceeds from the sale of public sector units are examples of
non debt creating capital receipts
86
fiscal deficit has to be financed through
borrowing
87
which deficit indicates the total borrowing requirements of the government from all sources
fiscal deficit
88
the difference between fiscal deficit and net interest liabilities of the government is called
primary deficit
89
interest payments made by the government minus interest receipts received by the government constitute
net interest liabilities
90
the exercise to translate the status gender commitments of the government into budgetary commitments is called
gender budgeting
91
which type of budgeting involves special initiatives for empowering women
gender budgeting
92
an examination of the impact of public expenditure and policies of the government on women is made through
gender budgeting
93
according to keynes Government fiscal policy should be used to
stabilize the level of output and employment
94
which type of Income Tax acts as an automatic stablizer?
proportional income tax
95
proportional Income Tax makes the disposable income and consumer spending _______ to fluctuations in GDP
less sensitive
96
deliberate actions taken to stabilize the economy constitute
discretionary fiscal policy
97
in what ways maybe budgetary deficits financed
borrowing, taxation or printing money
98
By ______, the government transfers the burden of reduced consumption on future generations
borrowing
99
performance and programme budgeting was introduced in India in
1968 for 4 Ministries and in 1975 76 for all developmental departments
100
in which budget The Chosen programs or projects are subjected to the test of actual performance against their expected standards
performance and programme budgeting
101
which budget establishes a correlation between physical output and financial input aspects of each program and activity
performance and programme budgeting
102
what refers to the benefits that arise out of physical output from respective financial inputs
outcome
103
the first outcome budget was introduced in
2005
104
which budget involves considering that there are no existing schemes and the budget has to be started from scratch or zero base
zero based budgeting
105
which budget involves critical review and rejustification of the inclusion of schemes to be included in the budget
zero based budgeting
106
______ is a compulsory levy payable by an economic unit to the government without any corresponding entitlement to receive a definite and direct quid pro quo from the government
Tax
107
_____ is the legal description of the object with reference to which Tax is payable
tax base
108
Tax base of excise duty is
production of commodities
109
tax base of income tax is
income of the individual
110
what is the measure of actual or observed change in tax revenue relative to GDP
tax buoyancy
111
proportionate change in tax revenue without any discretionary change relative to GDP is called
tax elasticity
112
tax revenue calculated after setting aside the change in tax revenue due to discretionary change in GDP is called
adjusted tax revenue
113
tax levied as a percentage of tax base irrespective of the size of the tax base at a uniform rate is called
proportional tax
114
tax rate increases with increase in size of tax base in
progressive taxation
115
______ helps to ensure economic equality in the society
progressive taxation
116
taxation in which the percentage of tax as well as the absolute amount of tax increases with increase in tax base is called
progressive taxation
117
method of taxation in which tax rate decreases with increase in size of tax base but the absolute amount of tax increases with increase in size of tax base is called
regressive taxation
118
The _____ of tax is on the first point of contact of tax with the taxpayers
impact
119
The _____ of tax is on the final resting place of tax
incidence
120
______ of tax is on those who cannot pass on the burden of tax to others
incidence
121
_____ are those taxes where the impact and incidence of tax is on the same economic unit
direct taxes
122
_____ are those taxes where the impact of tax is on 1 economic unit and the incidence is on another
indirect taxes
123
if tax is levied as a percentage of the value of goods irrespective of the number of goods produced or sold or imported it is called
ad valorem taxation
124
in ad valorem taxation, revenue increases with
rise in price
125
if tax is levied as flat rate per unit of good regardless of the number or value of the good then it is called
specific duty
126
tax sharing between the centre and States is governed by
80 and 88 Constitutional Amendment acts
127
which taxes were not shareable between the centre and the States before the 80th Constitutional Amendment Act
corporate tax
128
The 80th Constitutional Amendment Act was enacted on the recommendations of?
10th Finance Commission
129
under which article of the constitution do all taxes and duties referred in the union list except taxes under article 268 and article 269, surcharge, cess become sharable?
article 270
130
stamp duties and excise duties on toilet and medicinal purposes come under which article in the constitution
article 268
131
taxes under article 268 are levied by
the Government of India
132
taxes under article 268 are collected and appropriated by
the states
133
which taxes come under article 269
interstate sale and purchase, interstate consignment
134
taxes under article 269 are levied and collected by
the Government of India
135
taxes under article 269 are shared by the
States only
136
which article of the constitution provides provision to enact act law in state subjects by parliament on the request of legislatures of two or more States
article 252
137
the arrangement under article 252 where any tax coming under the states' domain can be handed over to the parliament is called
rental arrangement
138
which article of the Constitution deals with service tax
article 268(a)
139
under article 268(a) service tax can be levied by
Government of India only
140
service tax has been introduced by which constitutional amendment
88 Constitutional Amendment Act
141
which article of the constitution allows the Parliament to make laws to impose tax and duties even though not in union list in case of an emergency
article 358 b
142
which article of the Constitution allows the President to change provisions of articles from 268 to 279 during an emergency
article 354
143
tax additionally levied as a percentage of existing Tax amount or as a percentage of the value of goods and services or as a fixed amount of quantity of goods for a specific purpose is called
cess
144
tax additionally levied as a percentage of existing Tax amount without any specific purpose is called
surcharge
145
______ is levied if the size of the tax base exceeds a certain threshold limit.
surcharge
146
duty levied by importing countries on imported goods to raise the price of the subsidised product is called
countervailing duty
147
_______ refers to selling goods in foreign country at price lower than the price of home country
Price Dumping
148
______ refers to selling goods in foreign country at a price lower than the cost of production
cost dumping
149
_____ is mainly aimed at wiping out the domestic producers from the market
Cost Dumping
150
cost damping is also called
predatory dumping
151
duty imposed on dumped goods is called
anti dumping duty
152
countervailing duty is imposed to balance the lower cost because of
subsidy
153
anti dumping duty is imposed to counter ______ capture market
voluntary low cost
154
_______ says that at lower as well as higher rate of tax, tax revenue is low but tax revenue is high at optimal rate of tax
laffer curve
155
according to laffer curve, tax revenue is low at higher tax rate because
tax evasion is high
156
_________ argues that taxation and borrowing are equivalent means of Financing deficit
ricardian equivalence
