SSC CGL Economy – Public Finance: Budget & Deficits – Level 2 · Exam Level · Tier I Sprint

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SSC CGL Economy – Public Finance: Budget & Deficits – Level 2 · Exam Level · Tier I Sprint – 15 questions, subject: Indian Economy. Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

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1.  
Match the followingMatch the Article with its subject:
P. Art. 110 Q. Art. 114 R. Art. 116 S. Art. 280
1. Appropriation Bills 2. Finance Commission 3. Money Bill 4. Vote on account

Correct Answer: C [P-3, Q-1, R-4, S-2]

Explanation:

110 Money Bill, 114 Appropriation, 116 vote on account, 280 Finance Commission.

2.  
An imaginary budget (₹ crore): revenue receipts 1,200; recovery of loans 30; disinvestment 70; borrowings 500; revenue expenditure 1,450; capital expenditure 350. The fiscal deficit is:

Correct Answer: D [₹ 500]

Explanation:

Total expenditure 1,800 − (1,200 + 30 + 70) = 500 = borrowings.

3.  
In the same budget, interest payments are ₹ 380 crore. The primary deficit is:

Correct Answer: B [₹ 120]

Explanation:

Answer: ₹ 120. 500 − 380 = ₹ 120 crore.

4.  
In the same budget, the revenue deficit is:

Correct Answer: A [₹ 250]

Explanation:

Answer: ₹ 250. 1,450 − 1,200 = ₹ 250 crore.

5.  
Chronological orderArrange in chronological order:
I. FRBM Act II. Railway budget separated III. Ad hoc treasury bills ended IV. Budget date moved to 1 February

Correct Answer: C [II, III, I, IV]

Explanation:

Answer: II, III, I, IV. 1924 → 1997 → 2003 → 2017.

6.  
Assertion–Reason
A: Grants given by the Centre to States for building schools are revenue expenditure of the Centre.
R: The assets created belong to the States, not to the Centre.

Correct Answer: A [Both A and R are true and R explains A]

Explanation:

The Centre's books get no asset → revenue expenditure; that is why the ERD is computed.

7.  
Which pair is incorrectly matched?

Correct Answer: D [Public Account – needs an Appropriation Act for every withdrawal]

Explanation:

Public Account withdrawals need no Appropriation Act.

8.  
True/False countHow many of these are capital receipts?
market borrowing, GST, recovery of loans, disinvestment, dividends from PSUs, small savings

Correct Answer: B [Four]

Explanation:

Borrowing, loan recovery, disinvestment, small savings → capital; GST and dividends → revenue.

9.  
FD is ₹ 9 lakh crore and GDP is ₹ 200 lakh crore. The fiscal deficit as a percentage of GDP is:

Correct Answer: D [4.5%]

Explanation:

Answer: 4.5%. 9 ÷ 200 × 100 = 4.5%.

10.  
Two-quantity comparisonTwo-quantity comparison (any budget with positive interest payments):
Quantity I: fiscal deficit
Quantity II: primary deficit

Correct Answer: A [Quantity I > Quantity II]

Explanation:

PD = FD − interest; with interest > 0, FD > PD.

11.  
Trick SpotterA question gives "borrowings and other liabilities = ₹ 640 crore" and asks for the fiscal deficit. The fastest answer is:

Correct Answer: A [₹ 640]

Explanation:

Answer: ₹ 640. FD = Borrowing.

12.  
Spot My Mistake"Primary deficit = fiscal deficit − revenue deficit." The correct formula subtracts:

Correct Answer: C [interest payments]

Explanation:

Answer: interest payments. PD = FD − interest.

13.  
Reverse questionThe committee of 30 Lok Sabha members that suggests economies in the estimates is the:

Correct Answer: B [Estimates Committee]

Explanation:

Estimates Committee – the continuous economy committee.

14.  
A cut motion that seeks to reduce a demand to ₹ 1 is called a:

Correct Answer: B [policy cut]

Explanation:

Policy cut ₹ 1; token cut ₹ 100; economy cut a stated amount.

15.  
The time of presenting the Union Budget was changed from 5 pm to 11 am in:

Correct Answer: D [1999]

Explanation:

1999 (Yashwant Sinha, 27 February 1999).

➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Indian Economy book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-indian-economy

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