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IBPS RRB Office Assistant Government Budget — practice questions

Explore 31 free Government Budget questions in IBPS RRB Office Assistant Financial Awareness. Open each question or exercise to read its content, reference answers and available explanation.

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Government Budget questions and exercises with answers

Showing questions 1–30 of 31.

Revenue deficit is defined as the excess ofRead the answer and worked solution →Primary deficit is obtained by subtracting which item from the fiscal deficit?Read the answer and worked solution →Revenue receipts are described as non-redeemable because theyRead the answer and worked solution →Which of the following is a direct tax?Read the answer and worked solution →The Goods and Services Tax was implemented in India with effect fromRead the answer and worked solution →National defence, roads and government administration are examples ofRead the answer and worked solution →The sale of government shares in Public Sector Undertakings is calledRead the answer and worked solution →A government receipt is classified as a capital receipt when itRead the answer and worked solution →Gross fiscal deficit equals total expenditure minusRead the answer and worked solution →Which pair counts as non-debt creating capital receipts?Read the answer and worked solution →The fiscal deficit is significant chiefly because it indicates the government'sRead the answer and worked solution →From the financing side, gross fiscal deficit is the sum of borrowing at home, borrowing from abroad and borrowing fromRead the answer and worked solution →Wealth tax, gift tax and estate duty were called 'paper taxes' because theyRead the answer and worked solution →Progressive income taxation serves which objective of the government budget?Read the answer and worked solution →Which of these is a non-tax revenue receipt of the central government?Read the answer and worked solution →In 2024-25 the fiscal deficit was 5.6 per cent of GDP and interest payments were 3.6 per cent. The primary deficit wasRead the answer and worked solution →With revenue receipts at 9.2 per cent of GDP and revenue expenditure at 11.8 per cent, the revenue deficit isRead the answer and worked solution →Fiscal deficit can be written as revenue deficit plus capital expenditure minusRead the answer and worked solution →A revenue deficit implies that the government isRead the answer and worked solution →A large revenue deficit as a share of fiscal deficit signals that borrowing is financing mainlyRead the answer and worked solution →From which budget did India stop showing the 'budget deficit' as a separate measure?Read the answer and worked solution →Firms in India are taxed on which basis?Read the answer and worked solution →Under the excise structure described, which category bears the heaviest tax?Read the answer and worked solution →Net borrowing at home reaches commercial banks indirectly through which requirement?Read the answer and worked solution →Sort each receipt into revenue or capital.Read the answer and worked solution →Sort each levy into direct or indirect tax.Read the answer and worked solution →Compute the deficits from the 2024-25 budget figures.Read the answer and worked solution →True or false: statements about the budget and its deficits.Read the answer and worked solution →Complete the three deficit formulas.Read the answer and worked solution →Does each receipt create a liability or reduce assets?Read the answer and worked solution →

Worked practice questions

Revenue deficit is defined as the excess of

  1. total expenditure over total receipts
  2. interest payments over tax revenue
  3. revenue expenditure over revenue receipts
  4. capital expenditure over capital receipts
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Correct answer: C. revenue expenditure over revenue receipts

1. The revenue account covers the government's current income and spending. 2. A deficit arises when that spending exceeds that income. 3. So revenue deficit = **revenue expenditure - revenue receipts**. 4. Total expenditure over total receipts is the budget deficit, a different measure, which makes the third option the common trap. _Source: syllabus Introductory Macroeconomics, Ch 5 "Government Budget and the Economy", section 5.2.1 Measures of Government Deficit_

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Primary deficit is obtained by subtracting which item from the fiscal deficit?

  1. Capital expenditure
  2. Major subsidies
  3. Net interest liabilities
  4. Total tax revenue
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Correct answer: C. Net interest liabilities

1. Fiscal deficit includes interest owed on debt already accumulated. 2. To see the *current* fiscal imbalance, that interest burden is removed. 3. Primary deficit = fiscal deficit - **net interest liabilities**. 4. Net interest liabilities are interest payments minus interest receipts on net domestic lending. _Source: syllabus Introductory Macroeconomics, Ch 5 "Government Budget and the Economy", section 5.2.1 Measures of Government Deficit_

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Revenue receipts are described as non-redeemable because they

  1. are collected only from direct taxes
  2. are received from foreign lenders
  3. are repaid within one financial year
  4. do not create a claim on the government
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Correct answer: D. do not create a claim on the government

1. A receipt is redeemable if the government must eventually return it. 2. Revenue receipts carry no such obligation. 3. They therefore **do not create a claim on the government**, which is why they are called non-redeemable. 4. Borrowings do create a claim, and that is precisely why they are capital receipts instead. _Source: syllabus Introductory Macroeconomics, Ch 5 "Government Budget and the Economy", section 5.1.2 Classification of Receipts_

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