Practice Test


1) Which of the following statement is correct about Budget?
I. It is a statement of financial position for a future period, setting out proposed expenditure and means of financing it.
II. Article 111 of the Constitution requires the government to present to Parliament a statement of estimated receipts and expenditure in respect of every financial year.
Select correct one:


2) Which of the following is related to the 'Operation Green' mission?


3) Which of the following policy (Yojna) bring 5 lakh acres under organic farming?


4) Which Bill was proposed to be passing to solve problems in infrastructure contracts, PPP and Public Utilities?


5) Service Tax to be exempted on general insurance schemes under which scheme:


6) Consider the following statement (s) is/are related to the annual financial statement (Budget):
I. The annual financial statement is divided into three parts, consolidated fund, contingency fund and public account.
II. All revenues raised by the government, money borrowed and receipts from loans given by the government flow into the consolidated fund of India.
III. Article 112 of the Constitution requires the government to present to Parliament a statement of estimated receipts and expenditure in respect of every financial year.
Select the correct statement (s):


7) Which of the following Yojna gave nominal premium and highest ever compensation in case of crop loss?


8) Consider the following statement (s) is/are related to the MUDRA Yojna.
I. It has been initially formed as a wholly owned subsidiary of Small Industries Development bank of India (SIDBI) with 100% capital being contributed by it.
II. According to this joyna, loan is issued through Mudra credit card with a pre-assigned credit limit and the repayment tenure is as high as 7 years.


9) Which of the following scheme is related to the management and conversion of cattle dung and solid in farms to Compost, fertilizer, bio-gas and bio-CNG?


10) Consider the following statement (s):
I. Budget is the process of preparing business estimates.
II. Budgetary control is the means to achieve performance on the basis of budget.
Which of the following statements is/are correct about budget, budgeting & budgetary control?


11) Consider the following statement (s) is/are true about budget, budgeting & budgetary control.
I. Budgetary control is a wider concept whereas Budget and budgeting are narrower concepts.
II. Budget is the process of preparing business estimates.
Which of the following statements is/are correct?


12) According to the 2018-19 budget speech of Arun Jaitley, India is at third rank on the basis of what?


13) Which of the following new restructured scheme was launched to increase the governance capabilities of PRIs?


14) Which of the following three public general insurance companies will be merged into single insurance company as per Budget 2018-19?


15) What do you mean by "Fiscal Federalism"?


16) Select the incorrect phase of budget process in India.


17) Who was the first Finance minister of independent India?


18) Select the correct component of Components of the Union (Central) Budget of India?


19) Find out the correct definition of Capital payments?


20) 300 rurban clusters to be set up under which of the following schemes?


21) Which of the following is not the objective of Indian Budget?
I. To managed and proper distribution of resources.
II. To reduce inequalities in income and wealth.
III. To achieve social stability.


22) Which of the following is the most likely to cause current account deficit in India?
I. Reduced excise duties on Sports Utility Vehicles.
II. Reduced duties on Gold.
III. Ban on export of Onions.


23) Examine the following statement (s) in the context of Zero Based Budgeting (ZBB).
I. It was first taken up in India in the Union Budget 1987.
II. It is based on prioritizing all governing expenditure.
III. There is a cost benefit analysis of all schemes and the most important ones are kept alive if they are working well.
Which of the following statement (s) given above are correct?


24) What is the difference between 'vote-on account' and 'interim budget'?
I. The provision of a vote-on-account is used by a regular government, while interim budget is provision used by a caretaker government.
II. A vote-on-account only deals with the expenditure in government's budget while an interim budget include both expenditure and receipts.
Which of the following statement (s) given above are correct?


25) With reference to Indian Public Finance, consider the following statements (s).
I. Disbursement from Public Account of India are subject to the Vote of Parliament.
II. The Indian Constitution provides for the establishment of a Consolidated Fund, a Public Account and a Contingency Fund for each State.
III. Appropriations and disbursements under the Railways Budget are subject to the same form of parliamentary control as other appropriations and disbursement.
Which of these statements are correct?


26) The authorization for the withdrawal of funds from the consolidated Fund of India must come from:


27) When annual budget is passed by the Lok Sabha__________.


28) The Vote on Account is passed:


29) Arrange the following stages in the enactment of budget in proper order:
I. General discussion.
II. Appropriation Bill.
III. Finance Bill.
IV. Voting of the demands for grant.
V. Presentation to legislature.


30) Which of the following documents are presented to the legislature along with the budget?
I. An explanatory memorandum on the budget.
II. A summary of demands for grants.
III. An Appropriation Bill.
IV. A Finance Bill.
V. The economic survey.


31) The number of demands in the General Budget for civil expenditures is:


32) The word 'Budget' is mentioned in which of the following Articles of the Constitution of India:


33) The budget was formally introduced in India in:


34) The correct statements about Public Account of India are:
I. The public account is the fund to which all public moneys received by or on behalf of the government are credited.
II. No legislative appropriation is required for payments from the Public Account of India.
III. Legislative appropriation is required for payments from the Public Account of India.
IV. All public moneys, other than those credited to the Consolidated Fund of India, which are received by or on behalf of the government are credited to the Public Account of India.
V. It is operated by executive action.


35) Which of the following statements are incorrect?
I. Appropriation Bill cannot be amended while the Finance Bill can be amended.
II. Finance Bill cannot be amended while Appropriation Bill can be amended.
III. Same procedure governs both the Appropriation Bill and the Finance Bill.
IV. Appropriation Bill and the Finance Bill are governed by different procedures.
V. Appropriation bill cannot be rejected by the Rajya Sabha while Finance Bill can be rejected by it.


36) Which of the following social campaign of the Government of India that aims to generate awareness and improve the efficiency of welfare services intended for girls?


37) Which of the following component has been given option to remain open all seven days in a week across markets?


38) Which of the following Schemes has Objective to skill 1 crore youth in the next 3 years?


39) Which Cess is levied 0.5 per cent on all services?


40) Which of the following items become costlier after the Budget 2018-19?


41) Who presented the Union Budget 2020 in Parliament?


42) How much fund is allocated for Swachh Bharat Mission in 2020-21?


43) How much fund is allocated for the power and renewable energy sector?


44) When will India host G20 presidency?


45) How much fund is allocated for National Textile Mission?


46) How much fund is allocated for senior citizens and Divayang?


47) As per the Budget 2020, five archaeological sites to be developed at iconic sites with on-site museum. Which one of the following is not among them?


48) How much fund is allocated for Cultural Ministry?


49) As per Budget 2020, how many airports to be developed by 2024 to support UDAAN scheme?


50) How much fund is allocated for transport infrastructure in 2020-21?


51) How much fund is allocated for the development and promotion of industry and commerce in 2020-21?


52) How much fund is allocated for Jal Jeevan Mission


53) How much fund is allocated for the health care sector?


54) How much fund is allocated for National Mission on Quantum Computing and Technology?


55) According to Budget 2020, what is the fiscal deficit target for FY21?


56) Who presented the first Union Budget of Independent India?


57) How much fund is allocated for skill development?


58) How much fund is allocated for the welfare and development of Scheduled Tribes?


59) How much fund is allocated for welfare and development of schedule class and other backward classes?


60) According to Budget 2020, how much insurance cover increased per depositor?


61) How much fund is allocated for Bharat net program in 2021?


62) According to budget 2020, fibre to home connections through Bharat net will link how many panchayats this year?


63) According to Budget 2020, India is set to become $5 trillion economy by the end of?


64) According to Budget 2020, the role of Government is to double farmers' income by?


65) According to Budget 2020, how much is the agriculture credit target?


66) Who among the following was the first female presented budget in the parliament?


67) Who presented the Budget the maximum number of times?


68) Which rail will be set up by the government for agriculture so that goods can be quickly transported across the country?


69) How much amount is allocated for irrigation and rural development?


70) The government announced the introduction of which exam for Asian and African countries to help make India a higher education destination?


71) The government proposed to expand the national gas grid from present 16,200 km to?


72) In the next how many years, Government energy meters to be replaced by prepaid 'smart meters'?


73) Which of the following will be launched by civil aviation ministry for exports in agriculture?


74) According to budget, the use of which type of energy to be promoted in the farming sector?


75) How much concessional tax rate extended to power generation companies?


76) According to budget, people with income 5 lakh to 7.5 lakh will have to pay how much tax?


77) According to Budget, people between what income will pay taxes of 25%?


78) How much tax people will pay with the income above 15 lakh?


79) In order to boost MSMEs, the turnover threshold for audit raised to how much from 1 crore?


80) By which year Delhi Mumbai expressways and two other corridors will be completed?


81) How many consumers have got benefited by GST?


82) How many Aspirational Districts will be covered for AYUSHMAAN Treatment?


83) Name the independent body which will set up for the recruitment to non-gazetted posts through the computer-based online process?


84) By which year will be Expansion of Jan Ausadhi Kendra scheme to all districts will be completed?


85) How much percentage is raised for Customs duty on auto and auto parts?


86) By which year India will have the largest working-age population in the world?


87) How much amount is announced for National Infrastructure pipeline projects?


88) As per the budget 2020, how many taxpayers have been added to GST?


89) How many higher education institutes will have apprenticeship programs by March 2021?


90) Where does the tribal museum is going to set up?


91) What is the largest item of expenditure(in terms of percentage) in the Union Budget 2020-21?


92) What is the biggest source of Income for the Central Government in the Union Budget 2020-21?


93) Which of the following is not the rate of tax slab in the Union Budget 2020-21?


94) What is the disinvestment target for 2020-21?


95) Which of the following statement is/are correct about the Union Budget 2020-21?


96) What was the theme of the Union Budget 2020-21?


97) Till when the government wants to eliminate the 'Tuberculosis'?


98) The Union Budget 2020-21 aims:- I. To achieve seamless delivery through digital governance. II. To improve the physical quality of life through national infrastructure pipeline.


99) Vivad se Vishwas scheme is related to


100) As per the Union Budget, 2020-21, what is the highest rate of Direct Tax in India?


101) Deficit financing leads to inflation in general, but it can be checked if: 1. Only aggregate demand is increased. 2. All the expenditure is denoted national debt payment only. Select the correct above statements.


102) Which of the following statements regarding the grants made by parliaments outside of the annual budget is/are correct: 1. Vote of credit does not require any detail to be given about the expenditure. 2. Repayment of loans to the government of India go into the consolidation fund of India. 3. Excess grants is given only after the end of the financial year.


103) Which of the following provision are common to the three financial bill i.e. Money Bill (Article 110), Financial Bill-II (Article 117 (3)) and Financial Bill-I (Article 117(1)): 1. All three bills contain at least one of the matter listed in Article 110. 2. All three bills can be introduced only in the LokSabha.


104) What is the approximate average fertilizer consumption in India per hectare of land?


105) As per the Ministry of Agriculture the mismatch between projected demand of food grains and their production estimates stands presently at:


106) Which among the following was launched by the government of India on the advice of the World Bank: 1) Agricultural Prices Commission 2) Public Distribution System 3) Planning Commission 4) Food Corporation of India Select the correct above statements.


107) Consider the following items of expenditures which of the following will come under the category of non-plan expenditures: 1. Revenue expenditure on defence. 2. Grants to states and union territories and grants to foreign government. 3. Capital expenditure of defence.


108) With reference to the 14th Finance Commission which one of the following statements is not true:


109) Which of the following is correct statement? Mentioned it. Service tax is an/a:


110) With reference to the Minimum Support Price (MSP) and Procurement Price (PP): 1. Both are decided by government on the basis of recommendation of the Commission for Agriculture Cost and Prices (CACP). 2. MSP is price to protect the farmer while PP is to maintain the buffer stock.


111) The Exim policy announced in 1992 is for period of:


112) Which of the following statement is/are correct. Fiscal Responsibility at Budget Management Act (FRBMA) concern:


113) What is the name of scheme being provided skills and training for women in traditional and non-traditional trade?


114) The condition of Indirect taxes in the country's revenue is approximately:


115) Open market operation is the part of which policy:


116) Non tax revenues can be increased by improving the working of the:


117) In Union Budget 2013-14 'Voluntary Compliance Encouragement Scheme' was launched by Government of India. The scheme is related to:


118) As per recommendation of the fourteenth Finance Commission, percentage share of states of the sharable central taxes is:


119) Consider the following actions, which the government can take: . Devaluing the domestic currency. 2. Reduction in the import subsidy. 3. Adopting suitable policies, which attract greater FDI and more funds from FIIs. Which of the above action can help in reducing the current account deficit?


120) Assertion (A): Fiscal deficit is greater than budgetary deficit. Reason (R): Fiscal deficit is borrowing from RBI plus other liabilities of government to meet its expenditure.


121) Consider the following statements related to income tax of India: 1. It is a progressive tax. 2. It is a direct tax. 3. It is collected by state government. 4. It is a proportional tax. Choose the correct answer:


122) The first Indian product to have got protected Geographic Indicator is:


123) Consider the following statements regarding Finance Commission.


124) Which of the following items would not appear in a company's balance sheet.


125) _______ is the difference between total receipts and total expenditure:


126) Revenue deficit in India is:


127) If borrowing and other liabilities are added to the budget deficits we get ____:


128) The FRBM Act aims at reducing gross fiscal deficit by:


129) FRBM Act was passed in ________:


130) The most important sources of plan finance to cover up gap between intended expenditure and available resource is in:


131) Fiscal Policy refers to a policy of:


132) Deficit Financing means:


133) _______ refers to public revenue, expenditure and allied matters.


134) Which of these is a side effect of deflation?


135) Fiscal consolidation is one of the objectives of India's economic policy. Which of the following would help in fiscal consolidation?
1. increasing taxes.
2. getting more loans.
3. reducing subsidies.
Select the correct answer using the codes given below.


136) With reference to pulses, consider the following statements:
1. India is the largest producer of pulses.
2. India imports pulses to meet its domestic demand.
Which of the statements given above is/are correct?


137) The government provides subsidies in various sectors. Which of the following are the effects of subsidies?
1. it increases inflation
2. it increases fiscal deficit
3. it decreases export competitiveness
Select the correct answer using the codes given below.


138) The Fiscal Responsibility and Budget Management (FRBM) Act aimed for:
1. eliminating both revenue deficit and fiscal deficit
2. giving flexibility to RBI for inflation management
Which of the statements given above is/are correct?


139) With reference to deficit financing, monetized deficit is the part that is financed through


140) All banks are mandated to lend to priority sector. Which of the following would come under Priority Sector Lending (PSL)?
1. loans to corporations
2. loans to Self Help Groups
3. loans to small and marginal farmers
4. loans to state government
Select the correct answer using the codes given below.


141) Consider the following statements about Index of Industrial Production (IIP):
1. It is released monthly by Central Statistical Organisation (CSO).
2. It shows the volume of industrial activity.
Which of the statements given above is/are correct?


142) Financial market is classified into money market and capital market. Which of these are money market instruments?
1. T-Bills
2. Preference shares
3. Commercial papers.
Select the correct answer using the codes given below.


143) Suppose you went to a restaurant and paid certain taxes. which of these would be considered an indirect tax?
1. service tax paid for lunch
2. tip given to waiter
3. VAT paid.
Select the correct answer using the codes given below.


144) The expenditure in India is classified as capital and revenue. Which of the following is/are revenue expenditure?
1. interest payments on debt
2. loans granted by central government
3. subsidies
Select the correct answer using the codes given below.


145) Disinvestment by Government means:


146) Which one is Direct Tax?


147) If budgetary deficit is nil and borrowing and other liabilities are 70 crore, what is the amount of fiscal deficit?


148) Payment of interest is


149) If in a budget, Revenue deficit is Rs. 50,000 and borrowings are Rs. 75,000 crore. How much is the fiscal deficit?


150) If borrowing and other liabilities are added to the budget deficit, we get


151) Which is the example of Administrative non-tax Revenue of Central Government?


152) Capital receipt may come from


153) Which is a capital expenditure of govt.?


154) Fiscal Deficit always leads to


155) Borrowings in Governments Budget is:


156) The objective of taxation by the Government are -


157) Which of the following is not a direct tax?


158) Transfer Payments include -


159) The following is an example of commercial non-tax revenue?


160) The following is an example of administrative non-tax revenue -


161) On what broad aspect of commodities are indirect taxes imposed -


162) The following is not a characteristic of a tax.


163) The following is a characteristic of indirect tax -


164) The following is a characteristic of a direct tax -


165) In India service tax was introduced in -


166) Special assessment is also known as -


167) Impact of a tax refers to -


168) After levying of a tax, if the price does not rise at all, it means that -


169) Which factor has no role in the shifting of a tax?


170) Pick out the statement which is not true with regard to tax shifting.


171) Pick out the incorrect statement.


172) Pick out the tax which is not a part of indirect tax.


173) Pick out the characteristic which is not true of direct tax.


174) Pick out the factor which is not a feature of indirect taxes.


175) Pick out the factor which is not a demerit of indirect taxes.


176) An ad valorem tax is charged according to the


177) Specific duty is charged according to


178) An example of direct tax is


179) …………….. based on the principle 'higher the income, higher the tax'.


180) Generally, the nature of indirect tax is ....................


181) Direct tax are ................... in nature.


182) An increase in the direct tax means it is .......................


183) The term impact of taxation means


184) The term incidence of taxation refers to


185) The ultimate burden of taxation on producer implies ...............


186) The shared burden of taxation on consumer and producer implies


187) The existence of a parallel economy/black money


188) The National Income of India is estimated mainly through


189) The first estimate of national income in India was made by


190) Most important source of capital formation in India has been


191) Dear Money Policy implies


192) Which of the following is correct regarding the gross domestic savings in India?


193) The per capita income has been low in India because


194) Companies pay corporation tax on their


195) Which of the following is an indirect tax?


196) Which is the most industrially advanced state in India?


197) Who was the chairman of National Income Committee?


198) The Fiscal Policy of India is formulated by


199) Which of the following taxes is not levied by the Union Government?


200) National Income in India is compiled by


201) Index 'Residex' is associated with


202) Which of the following is not a method of estimating national income?


203) Which is the most disinvestments started in public enterprises?


204) Which one of the following is the most important item of non plan expenditure?


205) The Goods and Services tax (GST) proposed to be introduced, covers taxes like


206) Transfer payments include-


207) Interest payments are a part of -


208) Bharat Nirman, MGNREGA are examples of -


209) Which of the following is not true of public budget?


210) The number of sections of a good budget are -


211) The budget presented wken elections are due is known as -


212) Pick out the feature which is not applicable to a good budget


213) The finance commission's role is to -


214) Pick out the item which is not a part of the plan expenditure


215) Pick out the item which is not a part of capital budget.


216) Pick out the factor which is not a part of revenue budget.


217) Pick out the item which is not a part of non-tax revenue


218) Pick out the item which is not a part of tax revenue.


219) Pick out the item which is not a part of


220) Debts which have to be paid _______ at some specific future date are known as -


221) Loans taken by the government for purpose of war, earthquakes for covering budget deficit are -


222) Which of the following is not an objective of public debt management?


223) Which is / are the advantages of redemption of debt?


224) Pick out the feature which is not true in the case of repudiation of debt.


225) Pick out the method which is not a part of redemption


226) The method by which a certain portion matures every year as decided by the lottery system.


227) Pick out the feature which is not true of a capital levy.


228) Which of the following is the most comprehensive measure of budgetary imbalances?


229) The full form of FRBM Act 2003 is -


230) When budget revenue equals expenditure the budget shows?


231) The term fiscal federalism was introduced by -


232) The theory of fiscal federalism assumes -


233) Public Expenditure refers to ...................


234) The major objectives of public expenditure are


235) The defence expenditure minimizes the possibility of


236) An empirical law to the effect of growing public expenditure was propounded by


237) According to H.C. Adams' public expenditure has to perform the..................


238) Productive debts are utilized for ......................


239) External debts can be raised from ....................


240) The treasury bills are issued by RBI on behalf of the government


241) Debts that are repaid at some specific future date are known as


242) External loans are raised from


243) The term Fiscal Federalism was introduced by


244) Fiscal federalism deals with .....................


245) The main pillars of institutional framework to deal with centre-state financial relations in India is


246) Under Article 246 and Seventh Schedule, List I invest the Union with functions of


247) Under Article 246 and Seventh Schedule, List II invest the State with functions of


248) Which one of the following forms the largest share of deficit of Government of India Budget?


249) Which of the following taxes is collected by Panchayat?


250) When was disinvestment started in public enterprises?


251) The Finance Commission of India is appointed by the President under Article


252) Temporary tax levied to obtain additional revenue is called


253) Fiscal Policy of India is formulated by


254) Fresh evaluation of every item of expenditure from the very beginning of each financial year is called