SSC CGL Finance – Budget, Fiscal Deficits, Balance of Payments and the FRBM Act, 2003 – Level 1 · Warm-up

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SSC CGL Finance – Budget, Fiscal Deficits, Balance of Payments and the FRBM Act, 2003 – Level 1 · Warm-up – 10 questions, subject: Finance & Economics (Tier II Paper III). 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.  
One-line fact recallThe Union Budget is called the 'Annual Financial Statement' under Article:

Correct Answer: C [112]

Explanation:

Article 112 – Annual Financial Statement; 110 – Money Bill; 266 – Consolidated Fund; 280 – Finance Commission.

2.  
Revenue expenditure exceeding revenue receipts is called:

Correct Answer: B [Revenue deficit]

Explanation:

RD = revenue expenditure − revenue receipts.

3.  
Which of these is capital expenditure?

Correct Answer: B [Construction of a national highway]

Explanation:

Answer: Construction of a national highway. It creates an asset.

4.  
One-line fact recallThe FRBM Act was enacted by Parliament in:

Correct Answer: C [2003]

Explanation:

Fiscal Responsibility and Budget Management Act, 2003.

5.  
The balance of trade covers:

Correct Answer: A [Exports and imports of goods only]

Explanation:

Trade balance = visible (merchandise) trade.

6.  
Remittances sent home by Indians working abroad are recorded in the:

Correct Answer: D [Current account (transfers)]

Explanation:

Private transfers are invisibles in the current account.

7.  
Foreign direct investment is recorded in the:

Correct Answer: B [Capital (financial) account]

Explanation:

FDI creates claims on assets → capital/financial account.

8.  
Interest payments on government debt are part of:

Correct Answer: C [Revenue expenditure]

Explanation:

Answer: Revenue expenditure. They create no asset.

9.  
One-line fact recallThe Contingency Fund of India draws its existence from Article:

Correct Answer: A [267]

Explanation:

Art. 267 – Contingency Fund; Art.

10.  
Imaginary budget: revenue expenditure ₹ 1,300 crore, revenue receipts ₹ 1,120 crore. Revenue deficit is:

Correct Answer: D [₹ 180 crore]

Explanation:

Answer: ₹ 180 crore. 1,300 − 1,120 = 180.

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📘 SSC CGL 2026 – General Studies – Finance & Economics (Tier II Paper III)
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