Budget & Public Finance – Economy – WBCS Main Question Paper

Budget & Public Finance Economy WBCS Main Question Paper
budget mcqs with answers

WBCS Main Question Paper – 2019

51. It is an urban renewal and retrofitting program with a mission to develop 100 cities all over the country making them citizen friendly and sustainable. What is it?
(A) Start up India
(B) Skill India
(C) Swachh Bharat Abhijan
(D) Smart City Mission
 
127. Find the odd one out:
        Direct-Taxes are
(A) Income Tax
(B) Capital gains Tax
(C) Securities Transaction Tax (SIT)
(D) Goods and Services Tax (GST)
 
128. The scheme encourages parents to build a fund for the future education and marriage expenses for their female child, backed by Government of India. The scheme is
(A) Sukanya-Samriddhi Yojana
(B) Beti Bachao, Beti Padhao
(C) Atal Pension Yojana
(D) P.M. Jan Suraksha Yojana
 
129. Pradhan Mantri Ujjwala Yojana was launched in
(A) 2014
(B) 2015
(C) 2016
(D) 2017
 
172. Which one of the following was launched with the objective of helping the poor in rural areas to become self-employed through training?
(A) DPAP
(B) IRDP
(C) TRYSEM      (1979)
(D) DDP
 
173. At the presentation of the Annual Financial Statement before Parliament, a Finance Bill is also presented in fulfilment of the requirement of Article _______ of the Constitution, detailing the imposition, abolition, remission, alteration or regulation of taxes proposed in the Budget.
(A) Article 110(1)(a)
(B) Article 111(1)(a)
(C) Article 112(1)(a)
(D) Article 113(1)(a)
 
174. It aims to fast track taxpayer’s grievance redressal, ensuring early resolution by integrating all the online and physical grievances received by the department and keeping track of it until it reaches its logical conclusion. What is it?
(A) Aayakar Seva Kendra
(B) Aayakar Setu
(C) e-Nivaran
(D) TDS SMS alert scheme
 
175. ‘Housing for All by 2022‘, what is that scheme?
(A) START UP INDIA
(B) AMRUT
(C) SKILL INDIA
(D) DIGITAL INDIA
 
176. Aims to achieve an Open-Defecation Free (ODE) India by October 2, 2019. It is —
(A) Ujala Yojana
(B) P. M. Mudra Loan Bank Yojana
(C) Swachh Bharat Abhiyan
(D) Deen Dayal Upadhyaya Gram Jyoti Yojana
 
198. The Gold Monetization Scheme introduced by the Government of India in
(A) 2015
(B) 2016
(C) 2017
(D) 2018
 
 
 

WBCS Main Question Paper – 2018

2. The Tobin tax, initially suggested, by James Tobin was a tax on which among the following transactions?
a) Property Transactions
b) Currency Transactions
c) Industrial Transactions
d) All of the above
 
5. The Government launched the UDYAMI helping for which among the following?
a) Large capital industries
b) Female entrepreneur
c) Farmers introducing technology in farming
d) Micro, small & medium size enterprises
 
a) GAAR is a set of rules aimed at curbing aggressive tax planning.
b) GAAR is a set of rules aimed at curbing money laundering by Indians to foreign countries.
c) GAAR is a set of rules aimed at regulating investments by Indians in foreign countries.
d) GAAR is a set of rules aimed at regulating investments by Foreigners in India.
 
7. National Small Savings Fund is a part of which among the following?
a) Consolidated Fund of India
b) Public Account of India
c) Contingency Fund of India
d) Prime Minister’s Relief Fund
 
8. Public Distribution System (PDS) means distribution of essential commodities to a large number of people through a network of Fair Price Shops on a recurring basis. The Commodities distributed under PDS are
(1) Wheat
(2) Rice
(3) Sugar
(4) Pulses
(5) Kerosene
      Select the correct option:
a) 1, 2 and 4
b) 1, 2, 3 and 4
c) 1, 2, 3 and 5
d) All of the above
 
10. Union Budget is generally presented in which of the following month?
a) January
b) February
c) July
d) December
 
11. What does ‘Revenue Neutral Tax Rule’ means in reference to GST?
a) The rate at which tax revenues for States and Centre will remains same as before GST.
b) The tax rate will remain the same for Central and State
c) Both of the above
d) None of the above
 
14. Which is a nodal ministry for Beti Bachao Beti Padhao (BBBP) scheme?
a) Ministry of Home Affairs
b) Ministry of Woman and Child Development
c) Ministry of Health and Family Welfare
d) Niti Aayog
 
15. “Golden Handshake Scheme” is associated with
a) Inviting foreign companies
b) Private investment in public enterprises
c) Establishing Joint Enterprises
d) Voluntary retirement
 
16. The main objective of TRYSEM was
a) to train rural youth for self-employment
b) to train urban youth for self-employment
c) Both of the above
d) None of the above

 

19. Agriculture income tax is assigned to the State Government by
(44 – State List)
a) Finance Commission
b) National Development Council
c) Inter-state Council
d) Constitution of India
 
34. JAM trinity refers to the Government of India initiative to plug the leakage and deliver direct benefits to India’s poor in from of Direct Subsidy Transfer. The ‘J.A.M.’ stands for
a) Jan-Dhan, Aadhaar, Mobility
b) Jan-Dhan, Aadhaar, Mobile
c) Jan-Dhan, Ayush, Mobility
e) None of the above
 
40. Fiscal Deficit in Union budge means
a) the difference between current expenditure and current revenue
b) net increase in Union government’s borrowings from RBI.
c) the sum of budgetary deficit and net increase in internal and external borrowings
d) the sum of monetized deficit and budgetary deficit.
 
45. All taxes come under
a) Revenue receipts
b) Capital receipts
c) Public debt
d) Both (a) and (b)
 
151. GST will be levied on
a) Manufacturers
b) Retailers
c) Consumers
d) All of the above
 
156. Which constitutional amendment is done to pass the GST bill?
a) 101st    
b) 120th
c) 122nd   
d) 115th
 
159. Which of the following tax is abolished by the Goods and Services Tax?
a) Property Tax
b) Corporation Tax
c) VAT
d) All of the above
 
162. 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 Constitutions requires the government to present to Parliament a statement of estimated receipts and expenditure in respect of every financial year.
Select correct one:
a) Only I
b) Only II
c) Both I & II
d) Neither I nor II
 
165. If the government chooses to spend money freshly printed by the RBI against government securities, it should be kept in which among the following?
a) Fiscal Adjustment
b) Deficit financing
c) Mandatory spending
d) Retrenchment
 
169. Which among the following correctly denotes the Primary Deficit?
a) Revenue Expenditure–Revenue Receipts
b) Sum of the net increase in holdings of treasury bills of the RBI and its contributions to the market borrowing of the government.
c) Budgetary Deficit + Govt. market borrowings and liabilities
d) Fiscal Deficit–Interest Payment
 
179. Which among the following formulates fiscal policy?
a) RBI
b) Finance Ministry
c) SEBI
d) Planning Commission
 
180. Consider the following statements about GST:
i) Both Central and State taxes will be collected at the point of sale
ii) The Central and State GST will be charged on the manufacturing cost.
Which of the above statements are correct?
a) Only (i)
b) Only (ii)
c) Both of the above
d) None of the above
 
184. Fiscal Responsibility and Budget Management Act concerns
a) Fiscal deficit only
b) Revenue deficit only
c) Both fiscal and revenue deficit
d) Neither fiscal nor revenue deficit
 
154. Which of the following statement is not correct about INDIRA AWAS YOJNA?
a) It was launched in 1985-86.
b) Now it became the part of Bharat Nirman Programme.
c) A minimum of 60% fund is used for the constructions of houses of SC/STs.
d) Its financial burden is shared by the states in the ratio of 50 : 50
 
189. Which among the following was the first Government Company to be privatized in India?
a) Hotel Corporation of India
b) Rashtriya Chemicals & Fertilizers Ltd.
c) Maruti Udyog Limited
d) Modern Foods Industrial Limited  (2000)
 
191. The Mahatma Gandhi National Rural Employment Guarantee Act mandates at least what fraction of the beneficiaries to the women?
a) 25%    
b) 33%
c) 40%    
d) 50%
 
194. Development expenditure of the Central Government does not include
a) defense expenditure
b) expenditure on economic services
c) expenditure on social and community services
d) grant to states
 
195. A Non-Resident Indian wants to get approval under Government Route for FDI in ‘Single Brand’ product retailing in India. Which among the following would be the appropriate agency to approach for this application?
(Department for Promotion of Industry and Internal Trade – DPIIT)
a) Regional Office of Reserve Bank of India
b) Head Office of Reserve Bank of India
c) Department of Economic Affairs (Ministry of Finance)
d) Department of Industrial Policy and Promotion (Ministry of Commerce)
 
39. Fresh evaluation of every item of expenditure from the very beginning of each financial year is called
a) Fresh budgeting
b) Deficit budgeting
c) Performance budgeting
d) Zero-based budgeting
 

 

 

WBCS Main Question Paper – 2017

110. Which of the following taxes is levied and collected by the union, but assigned to the states ?
(A) Sales tax      
(B) Octroi       
(C) Excise       
(D) Consignment tax
 
114. The income tax in India is
(A) indirect and progressive
(B) direct and proportional
(C) direct and progressive
(D) indirect and proportional
 
115. The largest revenue in India is obtained from
(A) Sales Tax     
(B) Direct Taxes     
(C) Excise Duties       
(D) None of the above
 
121. Who Imposes corporation tax in India ?
(A) State govt.     
(B) Central govt.    
(C) Both State and Central govt.    
(D) Local govt.
 
123. Which of the following tax is imposed by the Central government but collected and kept by the State governments ?
(A) Excise duty     
(B) Custom duty      
(C) Stamp duty     
(D) Wealth tax
 
126. Which Indian state gives highest income tax collection to the Government of India ?
(A) Uttar Pradesh      
(B) Kerala       
(C) Maharashtra     
(D) Goa
 
138. The government imposes taxes to
(A) check the accumulation of wealth among the rich
(B) run the machinery of state
(C) uplift weaker sections
(D) None of the above

 

146. Which one among the following formulate the fiscal policy in India ?
(A) Planning Commission
(B) Finance Commission
(C) The Reserve Bank of India
(D) Ministry of Finance
 
147. States each maximum revenue through
(A) Tax Fines     
(B) Customs     
(C) License sales      
(D) Commercial Taxes
 
153. Revenue of the state governments are raised from the following sources, except
(A) entertainment tax     
(B) expenditure tax      
(C) agricultural income tax    
(D) land revenue
 
155. Tax-structure in India has become regressive in character as
(A) share of direct taxes and indirect taxes are same
(B) share of direct taxes increasing and indirect taxes decreasing
(C) share of direct taxes decreasing and indirect taxes increasing
(D) share of direct taxes and indirect taxes both falling
 
156. Deficit financing is termed as
(A) inflationary method of financing
(B) deflationary method of financing
(C) hyper-inflationary method of financing
(D) financing development expenditure
 
170. An ad valorem duty is a tax on the basis of
(A) the unit of the commodity
(B) the advertisement expenditure
(C) the price of a commodity
(D) None of the above
 
171. Government imposes taxes to
(A) run the machinery of the state
(B) uplift weaker sections
(C) check the accumulation of wealth among the rich
(D) None of the above
 
200. Redistribution policies geared to reduce economic inequalities include
(A) progressive tax policies     
(B) land reforms     
(C) rural development policies     
(D) All of the above
 
 

WBCS Main Question Paper – 2016

78. Which of the following duties is imposed by the Central Government but collected by the State Government ?
(A) Stamp Duties       
(B) Railways      
(C) Agriculture     
(D) None of the above
 
84. Which of the following taxes is levied by the State Government only ?
(A) Entertainment Tax      
(B) Wealth Tax       
(C) Income Tax        
(D) Corporation Tax
 
92. Which of the following is the implementing agency for National Agricultural Insurance scheme ?
(A) Food Corporation of India
(B) Commission for Agricultural costs and Prices
(C) Agricultural Insurance Company of India Limited
(D) NABARD
 
110. Sampoorna Grameen Swarozgar Yojana was introduced from –
(A) April 1999      
(B) September 2001      
(C) January 2002      
(D) February 2003
 
112. Krishi Vikas Yojana was introduced in the ______
(A) Tenth Five Year Plan          
(B) Eleventh Five Year Plan
(C) Twelfth Five Year Plan      
(D) Second Five Year Plan
 
126. The condition of indirect taxes in the country’s revenue is approximately
(about 35%)
(A) 70%       
(B) 75%       
(C) 80%         
(D) 86%
 
134. The tax levied on the interstate trade of goods is-
(IGST, previously it was Central Sales Tax)
(A) Sales tax        
(B) Excise tax        
(C) Service tax       
(D) Central Sales tax
 
137. Who was the Chairman of the Tax Reforms Committee in 1991 ?
(A) C. Rangarajan        
(B) Raja C. Chelliah       
(C) Partha Sarathi Som      
(D) None of the above
 
146. Which one of the following was launched with the objective of helping the poor in rural areas to become self-employed ?
(A) DPAP         
(B) IRDP     (2 Oct 1978)       
(C) TRYSEM         
(D) DDP
 
147. The Government Budget consists of which main components ?
(A) Revenue Budget and Capital Budget
(B) Capital Budget only
(C) Revenue Budget only
(D) None of the above

 

158. Which of the following states introduced Employment Guarantee Scheme first ?
(A) Madhya Pradesh        
(B) Maharashtra     (1972)      
(C) Tamilnadu        
(D) Karnataka
 
161. Which Government introduced Smart Card for unorganised sector workers ?
(A) Gujarat         
(B) Maharashtra        
(C) Bihar        
(D) Delhi
 
164. The sources of non-tax revenue for government of India are –
(A) net receipts from railway
(B) net receipts from postal department
(C) recovery of loans and advances 
(D) All of the above
 
169. In India which one among the following formulates the fiscal policy ?
(A) Planning Commission
(B) Ministry of Finance
(C) Finance Commission
(D) The Reserve Bank of India
 
171. On which one of the following is the benefits received principle of taxation to achieve optimally bases ?
(A) Marginal benefit received
(B) Total benefit received
(C) Average benefit received
(D) Ability to pay for the benefit
 
173. What is the primary Deficit in the Budget prepared by the finance ministry ?
(A) Total Expenditure – Total Revenue
(B) Fiscal Deficit – Interest Payments
(C) Revenue Expenditure – Revenue Receipts
(D) Capita! Expenditure – Capital Revenue
 
176. Development expenditure of the Central Government does not include
(A) Defence expenditure
(B) Expenditure on economic services
(C) expenditure on social and community services
(D) grant to states
 
177. State can earn maximum revenue through –
(A) land revenue     
(B) custom revenue       
(C) commercial taxes      
(D) excise duties on intoxicants
 
186. What is MAT ?
(A) Maximum Alternate Tax     
(B) Minimum Alternate Tax    
(C) Multiple Alternate Tax    
(D) Major Alternate Tax
 
187. Professional tax is imposed by the
(A) Central Government
(B) State Government 
(C) Both Central and State Government
(D).None of the above
 
188. Revenues collected from Professional tax and used by the –
(A) Central Government 
(B) State Government
(C) Both Central and State Government
(D) None of the above
 
195. When was the Fiscal Responsibility and Budget Management Act implemented ?
(A) 1950       
(B) 1970       
(C) 1993        
(D) 2003
 
 
 

WBCS Main Question Paper – 2015

113.  In case of use of mineral resources of a State by Union Government, the State can
(A) Increase royalty according to its own will
(B) Cannot increase royalty without permission of the Centre
(C) Sometimes it can change rate
(D) Uncertain
 
148.  Corporation tax is
(A) An important state level tax      
(B) Collected by local self-government
(C) A Central tax       
(D) None of the above
 
158.  Point out the incorrect statement. 
         Deficit financing
(A) Raises production when resource supply is elastic
(B) Is always inflationary
(C) Helps to employ unutilised resources
(D) Starts multiplier chain of working
 
160.  Deficit financing in the following way is inflationary, when supply is inelastic –
(A) Loan from the capital market         
(B) Government loan from RBI
(C) Loan from commercial banks        
(D) Loan from foreign banks
 
177.  Inflation can be controlled by
(A) surplus budget       
(B) increase in taxation
(C) reduction in public expenditure       
(D) All of the above
 
178.  Union excise duty is imposed on
(before GST)
(A) Sale of product        
(B) Personal and corporate income
(C) Ex-factory production        
(D) None of the above
 
196.  Which of the following items is of economically unproductive nature ?
(A) Defence       
(B) Interest charges      
(C) Subsidy     
(D) Administrative expenditure
 
193.  Which one of the following items takes importance in government earnings in India ?
(A) Deficit budget       
(B) Loan       
(C) Direct Tax      
(D) Indirect Tax
 
194.  Find out the incorrect statement
         Cause of inflation is
(A) Parallel economy      
(B) Low fiscal deficit 
(C) High growth of money supply      
(D) High rate of public expenditure
 
198.  Sale Tax
(A) Is progressive       
(B) Is regressive      
(C) Brings distributive justice     
(D) Is non-inflationary
 
199.  Maximum revenue in India comes from
(A) Corporation tax      
(B) Income tax      
(C) Customs duty     
(D) Excise duty
 

 

 

WBCS Main Question Paper – 2014

53.  Fiscal Deficit is –
(A) Revenue Receipts + Capital receipts (only recoveries of loan and other receipts) – Total expenditure
(B) Budget Deficit + Government’s market borrowings and liabilities
(C) Primary Deficit + Interest payment
(D) All of the above
 
59.  Primary Deficit is equal to –
(A) Fiscal Deficit + Interest payment
(B) Fiscal Deficit – Interest payment
(C) Budget Deficit – Revenue Deficit
(D) All of the above
 
60.  MODVAT (Modified Value Added Tax) was introduced in India in –
(A) 1991       
(B) 1986       
(C) 2009       
(D) 2005
 
62.  Child Labour Eradication Scheme was introduced in –
(A) 2nd December, 2011      
(B) 15th August, 1994      
(C) 15th August, 2001      
(D) 14th November, 1971
 
65.  Excise Duty stamps of Central Govt. are printed in the –
(A) Security printing Press, Hyderabad
(B) Currency Notes Press, Nasik Road
(C) Indian Security Press
(D) Modernised Currency Notes Press
 
72.  Expenditure for Public Admiration is under –
(A) Plan expenditure        
(B) Non-plan expenditure      
(C) Profitable expenditure      
(D) None of the above
 
73.  Fringe Benefit Tax (FBT) is levied on the employer for –
(A) The benefits that are usually enjoyed collectively by the employees and cannot be attributed to individual employees
(B) The benefits enjoyed by individual employees
(C) Both (a) and (b)
(D) None of the above
 
74.  Fiscal Policy is that part of Govt. policy which is –
(i) Concerned with raising revenue taxation and Govt. spending
(ii) In regard to taxation and spending program
(iii) Govt. spending policies that influence macro-economic conditions
(iv) For dealing with the budget especially with taxation and borrowing.
      Which one of the above statements is true ?
(A) Only (i)       
(B) (i) and (ii)       
(C) All of the above      
(D) None of the above
 
87.  Which of the following plan is meant for constructing houses for rural people
(A) Indira Awaas Yojana
(B) Ambedkar Awaas Yojana
(C) PURA Awaas Yojana 
(D) None of the above
 
90.  CENVAT is associated with –
(A) Direct tax      
(B) Income tax       
(C) Indirect tax      
(D) Service tax
 
91.  Nirmal Bharat Abhiyan Yojana is associated with –
(Total Sanitation Campaign – 1999)
(A) The development of Bihar
(B) Community toilets in slum areas
(C) Construction of houses for low income groups
(D) None of the above
 
98.  The states debt does not include –
(A) Loans from State Bank of India
(B) Loans from Central Govt
(C) Provident Funds
(D) Treasury Bills issued to international financial institutions
 
 

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