SSC CGL Economy – Public Finance: Budget & Deficits – Level 3 · Challenge

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SSC CGL Economy – Public Finance: Budget & Deficits – Level 3 · Challenge – 8 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.  
Statement-based
I. Recovery of loans reduces the fiscal deficit.
II. Borrowings are counted as receipts while computing the fiscal deficit.
III. Interest payments are revenue expenditure.
Which are correct?

Correct Answer: A [I and III only]

Explanation:

Borrowings are left out of receipts for FD.

2.  
RD is ₹ 4.8 lakh crore and grants for creation of capital assets are ₹ 1.9 lakh crore. The effective revenue deficit is:

Correct Answer: C [₹ 2.9 lakh crore]

Explanation:

Answer: ₹ 2.9 lakh crore. 4.8 − 1.9 = 2.9.

3.  
FD is ₹ 8 lakh crore and RD is ₹ 2 lakh crore. The revenue deficit as a percentage of the fiscal deficit is:

Correct Answer: A [25%]

Explanation:

Answer: 25%. 2 ÷ 8 × 100 = 25%.

4.  
If the primary deficit is zero, it means that:

Correct Answer: B [borrowing is used only to pay interest on past debt]

Explanation:

PD = FD − interest = 0 → FD = interest.

5.  
Which statement about the Rajya Sabha and the budget is correct?

Correct Answer: C [It can discuss the budget but cannot vote on demands for grants]

Explanation:

Demands are voted only in the Lok Sabha; Money Bills must be returned within 14 days with recommendations.

6.  
Imaginary budget (₹ crore): revenue receipts 2,000; non-debt capital receipts 200; borrowings 700; revenue expenditure 2,300; capital expenditure 600; interest 500; grants for capital assets 120. Match the deficits:
RD, ERD, FD, PD

Correct Answer: D [300, 180, 700, 200]

Explanation:

RD 2,300 − 2,000 = 300; ERD 300 − 120 = 180; FD = borrowing 700; PD 700 − 500 = 200.

7.  
Arrange in orderArrange the stages of the budget in Parliament:
I. Appropriation Bill II. Voting on demands for grants III. General discussion IV. Presentation

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

Explanation:

Presentation → discussion → demands → Appropriation Bill.

8.  
As per the PIB summary of Union Budget 2026-27, the fiscal deficit in BE 2026-27 is estimated at:

Correct Answer: B [4.3% of GDP]

Explanation:

BE 2026-27: 4.3%; RE 2025-26: 4.4% (pib.gov.in).

➤ 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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