Budget – Multiple Choice Questions (MCQs)

1. 25. What is a 'Finance Bill'?

   • A. A bill containing proposals for new taxes
   • B. amendments to the existing tax structure
   • C. and continuance of the existing tax structure
   • D. A bill related to government expenditure

2. 26. What is the 'Appropriation Bill'?

   • A. A bill authorizing the withdrawal of funds from the Consolidated Fund of India for meeting the expenditure approved by the Parliament
   • B. A bill related to government revenue
   • C. A bill on fiscal policy
   • D. A bill related to public debt

3. 27. What is the 'Consolidated Fund of India'?

   • A. The main account of the Government of India where all revenues received
   • B. loans raised
   • C. and recoveries of loans are credited
   • D. A fund used for contingency expenditure

4. 28. What is the 'Contingency Fund of India'?

   • A. The main account for government revenue
   • B. A fund used to meet unforeseen or urgent expenditure
   • C. A fund for planned development projects
   • D. A fund for public sector undertakings

5. 29. What is the 'Public Account of India'?

   • A. The account where all government receipts under debt
   • B. deposits
   • C. and remittances are lodged
   • D. A fund for government's capital expenditure

6. 30. What is 'Zero-Based Budgeting'?

   • A. A budgeting approach where all expenditures must be justified for each new period
   • B. A budgeting approach based on previous year's expenditure
   • C. A budgeting approach with a fixed allocation for each department
   • D. A budgeting approach focused only on capital expenditure

7. 31. What is 'Outcome Budget'?

   • A. A budget that focuses on the financial outlays
   • B. A budget that links financial outlays with expected outcomes and measurable targets
   • C. A budget prepared by external agencies
   • D. A budget with no specific targets

8. 32. What is 'Gender Budgeting'?

   • A. Allocating a separate budget for women's welfare and development
   • B. Reducing the overall budget to address gender inequality
   • C. Analyzing the impact of the budget on men and women
   • D. Providing tax benefits only to women

9. 33. What is 'Deficit Financing'?

   • A. Funding the budget deficit through borrowing or printing money
   • B. Reducing government expenditure to balance the budget
   • C. Increasing taxes to cover the deficit
   • D. Using surplus funds from previous years

10. 34. What are 'Public Sector Undertakings (PSUs)'?

    • A. Companies owned and controlled by private individuals
    • B. Companies owned and controlled by the government
    • C. Companies with majority foreign ownership
    • D. Small-scale industries

11. 35. What is 'Disinvestment' in the context of the budget?

    • A. Increasing investment in PSUs
    • B. Selling government stake in PSUs
    • C. Modernizing PSUs
    • D. Closing down loss-making PSUs

12. 36. What is 'Capital Receipts' in the budget?

    • A. Revenue from taxes
    • B. Proceeds from the sale of government assets and borrowings
    • C. Grants received from foreign countries
    • D. Interest received on loans given by the government