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Test Govt Budget

The document is a test on macroeconomics focusing on government budget concepts, including categorization of receipts and taxes, implications of revenue budgets, and the role of taxation in income inequality. It contains questions that require classification of government receipts, explanations of budgetary policies, and calculations of fiscal and primary deficits. Additionally, it addresses specific government initiatives like the Ujjwala Yojana and their objectives.

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aakash kumar
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8 views3 pages

Test Govt Budget

The document is a test on macroeconomics focusing on government budget concepts, including categorization of receipts and taxes, implications of revenue budgets, and the role of taxation in income inequality. It contains questions that require classification of government receipts, explanations of budgetary policies, and calculations of fiscal and primary deficits. Additionally, it addresses specific government initiatives like the Ujjwala Yojana and their objectives.

Uploaded by

aakash kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ECONOMICS BY AAKASH SIR

MACRO ECONOMICS
CH-10 [ GOVERNMENT BUDGET ]
TEST

Ques1) Categories the following government receipts into revenue and


capital receipts. Give reasons for your answer. [ 4 marks ]
(a) Receipts from sale of shares of a public sector undertaking.
(b) Borrowings from public or by government.
(c) Profita of public sector undertakings.
(d) Income tax received by government.

Ques2) Classify the following into capital receipts and revenue receipts. Give
reasons for your answer. [ 4 marks ]
(a) Recovery of loans.
(b) Interest received on loans.
(c) Dividend received from public enterprises.
(d) Grants from foreign governments.

Ques3) Give reasons categories the following into direct of tax and indirect
tax:- [ 4 marks]
(a) Corporation tax
(b) Sales tax
(c) Wealth tax
(d) Service tax

CONTACT – 9667966123 , 8882023366


ECONOMICS BY AAKASH SIR

Ques4) Explain how the government can use its budgetary policy in reducing
inequality of income in the country. [ 2 marks ]

Ques5) What is revenue budget? State its three implications. [ 3 marks ]

Ques6) "The government budget of a country cannot have fiscal deficit


without existence of revenue deficit." Defend or Refute the given statement.
[ 3 marks ]

Ques7) ' Taxation is an effective tool to reduce the inequalities of income. '
Justify yhe given statement with valid reasons. [ 3 marks ]

Ques8) The government, under Ujjwala yojana , is providing free LPG Kitchen
gas connections to the families" below the poverty line ". What objective
government is trying to fulfill through the government budget and how?
Explain. [ 2 marks ]

Ques 9) Identify the ' objectives of government budget ' from the following
statements. [ 2 marks ]
(i) Government increases tax on liquor.
(ii) Goverment increases its own expd. during deflation to increase aggregate
demand.
(iii) Goverment increases taxes on super rich people.

CONTACT – 9667966123 , 8882023366


ECONOMICS BY AAKASH SIR

(iv) Government increases expd. on infrastructure.

Ques10) On the basis of given information calculate the value of i) fiscal


deficit ii) primary deficit [ 3 marks ]

Revenue receipts - 20
Capital expenditure - 15
Revenue deficit - 10
Non debt creating capital receipts - 50% of revenue receipts
Interest payments - 4

CONTACT – 9667966123 , 8882023366

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