GK Quiz on Union Budget and Economic Survey, Questions and Answers

Union Budget and Economic Survey of India These are important documents that shape the fiscal policies and economic trajectory of the country. central budget, Presented annually by the Finance Minister, it outlines the government’s revenue and expenditure plans for the upcoming financial year, affecting various sectors and industries. On the other hand, the Economic Survey provides a comprehensive analysis of India’s economic performance, challenges and policy recommendations, providing important insights for making informed decisions and understanding the economic health of the country.

General Knowledge Quiz on Union Budget and Economic Budget

test your understanding about Union Budget and Economic Survey of India, through General Knowledge (GK) Quiz related to Union Budget and Economic Survey, These annual documents are important to understand the fiscal and economic policies of the Government of India. Let’s see how well you know about them!

Q1.Which of the following is not a component of the government budget?
A) Revenue Budget
B) capital budget
C) surplus budget
D) none of the above
S1. Answer. (C)

Q2. What is the difference between total receipts (except borrowing) and total expenditure of the government called?
A) fiscal deficit
B) revenue deficit
C) primary deficit
D) budgetary deficit
S2. Answer. (A)

Q3. Which of the following accurately describes the budget?
I. It serves as a projection of financial activities for the coming period, outlining the planned expenditure and the methods of financing it.
Second. Article 111 of the Constitution states that the government must submit to Parliament an outline of its estimated income and expenditure for each financial year.
A) only me
B) only II
C) Both I and II
D) none of the above
S3. Answer. (A)

Q4. Which of the following statements accurately relates to the Annual Financial Statement (Budget)?
I. The annual financial statement is divided into three sections: Consolidated Fund, Contingency Fund and Public Account.
Second. All government revenue generated, money borrowed, and proceeds from loans given by the government flow into the Consolidated Fund of India.
Third. Article 112 of the Constitution states that the government must provide to Parliament an outline of its estimated income and expenditure for each financial year.
Option:
A) Only I and II
B) II and III only
C) all of the above
D) none of the above
S4. Answer. (D)

Q5. Which of the following statements accurately describes the concepts of budget, budgeting and budgetary control?
I. Budgeting involves preparation of business estimates.
Second. Budgetary control acts as a mechanism to achieve the performance objectives outlined in the budget.
Option:
A) only me
B) only II
C) Both I and II
D) none of the above
S5. Answer. (B)

Q6. Which of the following statements accurately differentiates between budget, budgeting and budgetary control?
I. Budgetary control covers broader aspects as compared to budgeting and budgeting which have narrower scope.
Second. Budgeting involves preparing business projections.
Which statement is/are correct regarding budget, budgeting and budgetary control?
Option:
A) only me
B) only II
C) Both I and II
D) none of the above
S6. Answer. (A)

Q7. What do you understand by the term “fiscal federalism”?
A) It symbolizes the transfer of authority and responsibilities between national, sub-national and local governments.
B) It reflects monetary interactions between government entities within a federal system.
C) It represents the disposable income retained by households after income taxes have been deducted.
D) It assumes that as per capita income exceeds a certain limit, population increases.
S7. Answer. (B)

Q8. Identify the wrong stage of budget process in India.

a) Budget formulation: Making estimates of expenditure and revenue for the upcoming financial year.
b) Budget Enactment: Legislature’s endorsement of the proposed budget through enactment of the Finance Bill and the Appropriation Bill.
c) Budget Execution: Implementing the provisions set out in the Finance Act and the Appropriation Act by the Government, including revenue collection and expenditure allocation authorized by the Legislature.
d) Judicial Scrutiny of Budget Implementation: Evaluation of government financial activities conducted on behalf of the Legislature.
S8. Answer. (D)

Q9. Who was the first Finance Minister of India?
A) John Mithai
B)CD Deshmukh
C) Shanmukhan Shetty
D) Liaqat Ali Khan
S9. Answer. (A)

Q10. Identify the correct definition of capital payment.

A) It reflects capital expenditure on construction of capital projects and purchase of assets like land, buildings, machinery and equipment.
b) It reflects capital revenue generated from construction of capital projects and acquisition of assets such as land, buildings, machinery and equipment.
c) It represents the expenditure allocated for the daily functioning of the government and its various departments as well as the services provided by it.
D) None of the given options correctly defines capital payment.
S10. Answer. (A)

Question 11. In which section of the Indian Constitution the provision of Union Budget is mentioned?
A) Article 110
B) Article 268
C) Article 112
D) Article 356
S11. Answer. (C)

Question 12. What is the main objective of government budget?
A) to control inflation
B) managing the public debt
C) allocating resources efficiently
D) To increase government revenue.
S12. Answer. (C)

Q13. Which of the following statements accurately describes zero-based budgeting (ZBB)?
I. Zero-based budgeting was introduced in India during the Union Budget of 1987.
Second. Zero-based budgeting involves prioritizing all government expenditures.
Third. Zero-based budgeting involves conducting a cost-benefit analysis of all programs, ensuring that those programs considered most important remain ongoing if they are producing positive results.
Which statement among the given options is correct?
Option:
A) Only I and II
B) only II
C) Only III
D) all of the above
S13. Answer. (A)

Question 14. What differentiates ‘Vote on Account’ from ‘Interim Budget’?
I. The use of vote on account is customary for a functioning government, while interim budget is usually employed by an interim or caretaker government.
Second. Vote on Account deals only with the expenditure of the government, whereas the interim budget includes both expenditure and receipts.
Which of the given statements accurately describes the difference between ‘Vote on Account’ and ‘Interim Budget’?
Option:
A) only me
B) only II
C) Both I and II
D) none of the above
S14. Answer. (C)

Question 15. Which of the following statements is correct regarding Indian public finance?
I. Disbursements from the Public Account of India are subject to the vote of the Parliament.
Second. The Indian Constitution provides for the establishment of a Consolidated Fund, a Public Account and a Contingency Fund for each State.
Third. Appropriations and disbursements under the Railway Budget are subject to parliamentary control like other appropriations and disbursements.
A) I and II
B) II and III
C) I and III
D) I, II, and III
S15. Answer. (B)

Q16. Who gives the right to withdraw money from the Consolidated Fund of India?
A) President of India
B) Parliament of India
C) Prime Minister of India
D) Union Finance Minister
S16. Answer. (B)

Q17. What will happen if Lok Sabha fails to pass the annual budget?
A) The budget is revised and presented again.
B) The budget is sent to the Rajya Sabha for suggestions.
C) The Union Finance Minister is asked to resign.
D) The Prime Minister submits the resignation of the Council of Ministers.
S17. Answer. (D)

Question 18. When is Vote on Account passed?
A) after voting on the demands
B) before general discussion
c) after general discussion
D) Either after voting on the demands or after general discussion.
S18. Answer. (C)

Question 19. Arrange the following steps in the correct order in enactment of budget:
I. General discussion
Second. Appropriation Bill
Third. finance bill
IV. voting on demands for grants
V. Presentation before the legislature
Option:
A) I, II, III, IV, V
B) V, I, II, III
C) V, I, IV, III, II
D) V, I, III, IV, II
S19. Answer. (B)

Q20. Which documents are presented in the Legislature along with the budget?
I. An Explanatory Memorandum on the Budget
Second. Summary of Demands for Grants
Third. an appropriation bill
IV. a finance bill
V. Economic Survey
Code:
A) I, III, and V
B) I, II, and III
C) II, III, and V
D) I, II, III and IV
S20. Answer. (D)

Question 21. When was the budget formally presented in India?
A) 1860
B) 1947
c) 1950
D) 1868
S21. Answer. (A)

Question 22. Which statements are correct about the public account of India?
I. Public account is the fund in which all public money received by or on behalf of the government is deposited.
Second. No legislative appropriation is required for payment from the public account of India.
Third. Legislative appropriation is necessary for payments from the public account of India.
IV. All public money, other than money deposited in the Consolidated Fund of India, received by or on behalf of the Government is credited to the public account of India.
V. It is operated by executive action.
Option:
A) I, II, and V
B) I, III, and V
C) II, IV, and V
D) II and IV
S22. Answer. (C)

Q23. Which statements are incorrect about Appropriation Bill and Finance Bill?
I. Appropriation Bill cannot be amended whereas Finance Bill can be amended.
Second. Finance Bill cannot be amended whereas Appropriation Bill can be amended.
Third. The same procedure governs both the Appropriation Bill and the Finance Bill.
IV. Appropriation Bills and Finance Bills are governed by different procedures.
V. An Appropriation Bill cannot be rejected by the Rajya Sabha whereas a Finance Bill can be rejected by the Rajya Sabha.
Option:
A) II and IV
B) II, IV, and V
C) I and III
D) I, III, and V
S23. Answer. (B)

Question 24. In which article is the word ‘Budget’ mentioned in the Constitution of India?
A) Art. 266
B) Art. 112
C) Art. 265
D) none
S24. Answer. (D)

Question 25. Consider the following statements regarding zero-based budgeting (ZBB):
I. Zero-based budgeting was introduced in India during the Union Budget of 1987.
Second. Zero-based budgeting involves prioritizing all government expenditures.
Third. This involves a cost-benefit analysis of all plans, and those considered most important are retained if they are functioning effectively.
Which of the above statements is correct?
A) Statements I and II
B) Statements I and III
C) Statements II and III
D) all statements
S25. Answer. (A)

General Knowledge Quiz, Questions and Answers on Union Budget and Economic Survey_40.1

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