Test your knowledge with our MCQ on budget! Challenge yourself to see how well you understand key financial concepts and take control of your personal finances.
Table of Contents
Budget is a financial plan that outlines estimated income and expenditures over a specific period. It serves as a tool for managing and allocating resources, helping individuals, businesses, or governments to achieve their financial goals and priorities. The budget provides a framework for decision-making, ensuring that spending aligns with available funds and strategic objectives.
MCQ on Budget
1. What is the primary objective of the Union Budget in India?
a. Economic growth
b. Wealth distribution
c. Fiscal discipline
d. All of the above
Answer: d. All of the above
2. Who is responsible for presenting the Union Budget in the Indian Parliament?
a. Prime Minister
b. Finance Minister
c. President
d. Chief Economic Advisor
Answer: b. Finance Minister
3. When is the Union Budget of India typically presented?
a. January
b. February
c. March
d. April
Answer: b. February
4. What does the term “Fiscal Deficit” in the budget represent?
a. Excess of government’s total revenue over total expenditure
b. Excess of government’s total expenditure over total revenue
c. Excess of planned expenditure over unplanned expenditure
d. Excess of non-tax revenue over tax revenue
Answer: b. Excess of government’s total expenditure over total revenue
5. What is the significance of the “Revenue Deficit” in the budget?
a. It indicates the shortfall in government revenue
b. It represents the excess of revenue expenditure over revenue receipts
c. It signifies the surplus in government revenue
d. It is the difference between capital expenditure and revenue expenditure
Answer: b. It represents the excess of revenue expenditure over revenue receipts
6. Which type of budget is presented in an election year before a new government takes charge?
a. Annual Budget
b. Vote-on-Account
c. Interim Budget
d. Supplementary Budget
Answer: c. Interim Budget
7. What is the purpose of the Vote-on-Account in the budgetary process?
a. To approve new policies
b. To seek approval for expenditures during the election year transition
c. To allocate funds for long-term projects
d. To address fiscal deficit concerns
Answer: b. To seek approval for expenditures during the election year transition
8. Which of the following is a part of the Union Budget in India?
a. Economic Survey
b. Railway Budget
c. State Budgets
d. Both a and b
Answer: d. Both a and b
9. What does the term “Plan Expenditure” in the budget refer to?
a. Expenditure planned for the next five years
b. Expenditure on planned projects and schemes
c. Expenditure on unplanned activities
d. Expenditure on defense
Answer: b. Expenditure on planned projects and schemes
10. Which economic document is presented separately before the Union Budget to provide an overview of the economy?
a. Fiscal Policy
b. Economic Survey
c. Monetary Policy
d. Budget Highlights
Answer: b. Economic Survey
FAQs
Interim budget is a temporary financial plan presented by the government when a full-fledged budget cannot be presented in an election year due to the transition between governments. It addresses essential expenditures to keep the government running until a new government is formed and a regular budget is presented. The interim budget does not typically introduce major policy changes but focuses on maintaining stability during the transitional period. It serves as a bridge to meet immediate financial needs until a new administration takes charge.
Also See- Interim Budget 2024 MCQ
Static GK (General Knowledge) for all Competitive exams 2024