Static Quiz 16 December 2022
Quiz-summary
0 of 5 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
Information
Static Quiz 16 December 2022 for UPSC Prelims
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 5 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- Answered
- Review
- Question 1 of 5
1. Question
Which of the folllowing are the role of government in Budgeting?
1. To Promote Economic, Efficiency and Growth
2. To Strengthen the Institution
3. For Fair Distribution of Income through Taxation
4. To provide a generous social security system and egalitarian societyCorrectAns;- d) All of the above
Explanation;-
About Objectives of Government Budget
1. Reallocation of Resources – It helps to distribute resources keeping in view the social and economic advantages of the country. The factors that influence the allocation of resources are.
2. Allowance or Tax concessions – The government gives allowance and tax concessions to manufacturers to encourage investment.
3. Direct production of goods and services – The government can take the production process directly if the private sector does not show any interest.
4. Minimise inequalities in income and wealth – In an economic system, income and wealth inequality is an integral part. So, the government aims to bring equality by imposing a tax on the elite class and spending extra on the well-being of the poor.
5. Economic Stability – The budget is also utilized to avoid business fluctuations to accomplish the aim of financial stability. Policies such as deficit budget during deflation and excess budget during inflation assist in balancing the prices in the economy.
6. Manage Public Enterprises – Many public sector industries are built for the social welfare of the people. The budget is planned to deliver different provisions for operating such business and imparting financial help.
7. Economic Growth – A country’s economic growth is based on the rate of investment and saving. Therefore, the budgetary plan focuses on preparing adequate resources for investing in the public sector and raise the overall rate of investments and savings.
8. Decrease regional differences – It aims to diminish regional inequalities by implementing taxation and expenditure policy and promoting the installation of production units in underdeveloped regions.
IncorrectAns;- d) All of the above
Explanation;-
About Objectives of Government Budget
1. Reallocation of Resources – It helps to distribute resources keeping in view the social and economic advantages of the country. The factors that influence the allocation of resources are.
2. Allowance or Tax concessions – The government gives allowance and tax concessions to manufacturers to encourage investment.
3. Direct production of goods and services – The government can take the production process directly if the private sector does not show any interest.
4. Minimise inequalities in income and wealth – In an economic system, income and wealth inequality is an integral part. So, the government aims to bring equality by imposing a tax on the elite class and spending extra on the well-being of the poor.
5. Economic Stability – The budget is also utilized to avoid business fluctuations to accomplish the aim of financial stability. Policies such as deficit budget during deflation and excess budget during inflation assist in balancing the prices in the economy.
6. Manage Public Enterprises – Many public sector industries are built for the social welfare of the people. The budget is planned to deliver different provisions for operating such business and imparting financial help.
7. Economic Growth – A country’s economic growth is based on the rate of investment and saving. Therefore, the budgetary plan focuses on preparing adequate resources for investing in the public sector and raise the overall rate of investments and savings.
8. Decrease regional differences – It aims to diminish regional inequalities by implementing taxation and expenditure policy and promoting the installation of production units in underdeveloped regions. - Question 2 of 5
2. Question
Which of the following statements about Vote on account are correct?
1. A vote-on-account contains only the expenditure of the government
2. A Vote-On-Account is treated as a formal matter and passed by the Lok Sabha without discussionCorrectAns;- c) Both 1 and 2
Explanation;-
Both the statements are correct.IncorrectAns;- c) Both 1 and 2
Explanation;-
Both the statements are correct. - Question 3 of 5
3. Question
Which of the following are correctly matched related to component of Government Budget?
1. Revenue Budget = The revenue budget contains revenue expenditure and receipts.
2. Capital Budget = The capital budget includes the capital receipts (such as disinvestment, borrowing) and lengthy capital expenditure (for instance, long-term investments, creation of assets).CorrectAns;- c) Both 1 and 2
Explanation;-
• Both the statements are correct.
About Components of Government Budget
• The budget is classified into two segments:-
• Revenue Budget – The revenue budget contains revenue expenditure and receipts. In this receipt, both tax revenue (such as excise duty, income tax) and non-tax revenue (like profits, interest receipts) are recorded.
• Capital Budget – The capital budget includes the capital receipts (such as disinvestment, borrowing) and lengthy capital expenditure (for instance, long-term investments, creation of assets). Capital receipts are government liabilities or decrease financial assets, such as the recovery of loans, market borrowing, etc.
Impact of the budget.
A budget influences society in three steps.
a. It improves the aggregate financial policy by controlling expenditure, given the number of revenues.
b. It allocates resources of a nation on a foundation of social priorities.
c. It comprises efficient and productive programmes to deliver goods and services goods and services and achieve targeted goals.IncorrectAns;- c) Both 1 and 2
Explanation;-
• Both the statements are correct.
About Components of Government Budget
• The budget is classified into two segments:-
• Revenue Budget – The revenue budget contains revenue expenditure and receipts. In this receipt, both tax revenue (such as excise duty, income tax) and non-tax revenue (like profits, interest receipts) are recorded.
• Capital Budget – The capital budget includes the capital receipts (such as disinvestment, borrowing) and lengthy capital expenditure (for instance, long-term investments, creation of assets). Capital receipts are government liabilities or decrease financial assets, such as the recovery of loans, market borrowing, etc.
Impact of the budget.
A budget influences society in three steps.
a. It improves the aggregate financial policy by controlling expenditure, given the number of revenues.
b. It allocates resources of a nation on a foundation of social priorities.
c. It comprises efficient and productive programmes to deliver goods and services goods and services and achieve targeted goals. - Question 4 of 5
4. Question
Which of the following statements about Excess Grant are correct?
1. It is granted when money has been spent on any service during a financial year in excess of the amount granted for that service in the budget for that year.
2. It is voted by the Lok Sabha after the financial year.CorrectAns;- c) Both 1 and 2
Explanation;-
• Both the statements are correct.IncorrectAns;- c) Both 1 and 2
Explanation;-
• Both the statements are correct. - Question 5 of 5
5. Question
Which of the following statements about Appropriation Bill are correct?
1. Appropriation Bill is not a money bill but still it allows the government to withdraw funds from the Consolidated Fund of India
2. As per article 114 of the Constitution, the government can withdraw money from the Consolidated Fund only after receiving approval from President.CorrectAns;- d) None of the above
Explanation;-
• Both the statements are incorrect.
About Appropriation Bill
• Appropriation Bill is a money bill that allows the government to withdraw funds from the Consolidated Fund of India to meet its expenses during the course of a financial year.
• As per article 114 of the Constitution, the government can withdraw money from the Consolidated Fund only after receiving approval from Parliament.
• To put it simply, the Finance Bill contains provisions on financing the expenditure of the government, and Appropriation Bill specifies the quantum and purpose for withdrawing money.About Procedure followed
• The government introduces the Appropriation Bill in the lower house of Parliament after discussions on Budget proposals and Voting on Demand for Grants.
• The Appropriation Bill is first passed by the Lok Sabha and then sent to the Rajya Sabha.
• The Rajya Sabha has the power to recommend any amendments in this Bill. However, it is the prerogative of the Lok Sabha to either accept or reject the recommendations made by the upper house of Parliament.
• The unique feature of the Appropriation Bill is its automatic repeal clause, whereby the Act gets repealed by itself after it meets its statutory purpose.What happens when the bill is defeated?
• Since India subscribes to the Westminster system of parliamentary democracy, the defeat of an Appropriation Bill (and also the Finance Bill) in a parliamentary vote would necessitate resignation of a government or a general election. This has never happened in India till date, though.IncorrectAns;- d) None of the above
Explanation;-
• Both the statements are incorrect.
About Appropriation Bill
• Appropriation Bill is a money bill that allows the government to withdraw funds from the Consolidated Fund of India to meet its expenses during the course of a financial year.
• As per article 114 of the Constitution, the government can withdraw money from the Consolidated Fund only after receiving approval from Parliament.
• To put it simply, the Finance Bill contains provisions on financing the expenditure of the government, and Appropriation Bill specifies the quantum and purpose for withdrawing money.About Procedure followed
• The government introduces the Appropriation Bill in the lower house of Parliament after discussions on Budget proposals and Voting on Demand for Grants.
• The Appropriation Bill is first passed by the Lok Sabha and then sent to the Rajya Sabha.
• The Rajya Sabha has the power to recommend any amendments in this Bill. However, it is the prerogative of the Lok Sabha to either accept or reject the recommendations made by the upper house of Parliament.
• The unique feature of the Appropriation Bill is its automatic repeal clause, whereby the Act gets repealed by itself after it meets its statutory purpose.What happens when the bill is defeated?
• Since India subscribes to the Westminster system of parliamentary democracy, the defeat of an Appropriation Bill (and also the Finance Bill) in a parliamentary vote would necessitate resignation of a government or a general election. This has never happened in India till date, though.
