True or false about the budget

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   Income tax is a direct tax.

2. Statement is true

   No

   Statement

   Excise duty is a direct tax.

3. Statement is true

   Yes

   Statement

   Borrowing is a capital receipt.

4. Statement is true

   Yes

   Statement

   Revenue deficit is part of the fiscal deficit.

5. Statement is true

   No

   Statement

   The fiscal deficit is unrelated to borrowing.

Instructions

Decide whether each statement is true or false.

Explanation