SSC CGL Finance – Budget, Fiscal Deficits, Balance of Payments and the FRBM Act, 2003 – Level 2 · Exam Level · Paper III Sprint
← Back
CA + KA + errors = change in reserves.
₹299 →
SSC CGL Finance – Budget, Fiscal Deficits, Balance of Payments and the FRBM Act, 2003 – Level 2 · Exam Level · Paper III Sprint – 16 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.
Get daily current affairs & exam alerts – follow us
YouTube
WhatsApp Channel
Telegram Channel
Facebook Page
Instagram
Share with friends & study groups
Link to this page from your website / blog (HTML code)
1. Data tableFiscal deficit is:
Directions (next 4 questions): Imaginary budget (₹ crore): revenue receipts 900 (tax 720, non-tax 180); revenue expenditure 1,150 (of which interest 320 and grants for creation of capital assets 70); capital expenditure 300; recoveries of loans 25; disinvestment 35.
Correct Answer: C [₹ 490 crore]
Explanation:
Total expenditure 1,450 − (900 + 25 + 35) = 490.
2.
Data tablePrimary deficit is:
Correct Answer: A [₹ 170 crore]
Explanation:
Answer: ₹ 170 crore. 490 − 320 = 170.
3.
Data tableEffective revenue deficit is:
Correct Answer: B [₹ 180 crore]
Explanation:
RD 250 − grants for capital assets 70 = 180.
4.
Data tableThe government's borrowing and other liabilities equal:
Correct Answer: D [₹ 490 crore]
Explanation:
Answer: ₹ 490 crore. Borrowing = fiscal deficit.
5.
Statement-basedWhich is/are correct?
I. A zero primary deficit means the government borrows only to pay interest.
II. Fiscal deficit always equals revenue deficit plus capital expenditure.
I. A zero primary deficit means the government borrows only to pay interest.
II. Fiscal deficit always equals revenue deficit plus capital expenditure.
Correct Answer: A [Only I]
Explanation:
II ignores non-debt capital receipts (recoveries, disinvestment): FD = RD + capex − non-debt capital receipts.
6.
Match the followingMatch:
P. Article 112 Q. Article 266 R. Article 110
1. Money Bill 2. Annual Financial Statement 3. Consolidated Fund and Public Account
P. Article 112 Q. Article 266 R. Article 110
1. Money Bill 2. Annual Financial Statement 3. Consolidated Fund and Public Account
Correct Answer: B [P-2, Q-3, R-1]
Explanation:
From the Constitution, as cited in the Key to Budget Documents 2026.
7.
Assertion–Reason
A: A high revenue deficit is a warning sign even if capital expenditure is modest.
R: It means the government borrows to meet consumption-type expenditure that creates no assets.
A: A high revenue deficit is a warning sign even if capital expenditure is modest.
R: It means the government borrows to meet consumption-type expenditure that creates no assets.
Correct Answer: C [Both A and R are true and R explains A]
Explanation:
Borrowing for revenue spending adds debt without adding future income-earning assets.
8.
Imaginary BoP (US$ bn): exports 380, imports 520, net services 95, net transfers 45, net income −25. The current account balance is:
Correct Answer: D [Deficit of 25]
Explanation:
Trade −140 + invisibles 115 = −25.
9.
Same economy: net FDI 30, net FPI −8, ECB and loans 6, other capital −10; errors and omissions +1. The overall BoP balance is:
Correct Answer: A [Deficit of 6 (reserves fall)]
Explanation:
Answer: Deficit of 6 (reserves fall). CA −25 + KA 18 + 1 = −6.
10.
Odd one outwhich is NOT a revenue receipt of the Union Government?
Correct Answer: B [Market borrowings]
Explanation:
Borrowings create a liability → capital receipt.
11.
Two-quantity comparisonTwo-quantity comparison (Budget at a Glance 2026-27, BE):
Quantity I: Fiscal deficit
Quantity II: Borrowings and other liabilities
Quantity I: Fiscal deficit
Quantity II: Borrowings and other liabilities
Correct Answer: C [Quantity I = Quantity II]
Explanation:
Both ₹ 16,95,768 crore – the fiscal deficit is financed by borrowing.
12.
Trick SpotterGiven fiscal deficit and interest payments, the fastest way to primary deficit is:
Correct Answer: D [Subtract interest from fiscal deficit]
Explanation:
PD = FD − interest – one subtraction.
13.
Spot My Mistake“Revenue expenditure 1,600, capital expenditure 400, revenue receipts 1,300, so fiscal deficit = 2,000 − 1,300 = 700.” With recoveries 40 and disinvestment 60, the correct fiscal deficit is:
Correct Answer: A [600]
Explanation:
Non-debt capital receipts (40 + 60) also finance spending: 2,000 − 1,400 = 600.
14.
Under Article 113, estimates of expenditure from the Consolidated Fund are presented to the Lok Sabha as:
Correct Answer: B [Demands for Grants]
Explanation:
Generally one Demand for each Ministry or Department.
15.
One-line fact recallAs per the Union Budget 2026-27 (presented on 1 February 2026), the fiscal deficit (BE) is:
Correct Answer: C [4.3% of GDP]
Explanation:
4.3% BE 2026-27; 4.4% RE 2025-26; 4.8% in 2024-25 actuals.
16.
Which statement about the current account deficit (CAD) is correct?
Correct Answer: D [A CAD must be financed by net capital inflows or by drawing down reserves]
Explanation:
CA + KA + errors = change in reserves.
➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Finance & Economics (Tier II Paper III) book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-finance-economics
📘 SSC CGL 2026 – General Studies – Finance & Economics (Tier II Paper III)
Here you get the answer with a one-line explanation. 1,064 original questions with worked answers · Part A Finance & Accounts and Part B Economics & Governance notes · practice sets + 3 mock tests
Get the book – ₹149 More quizzes
› SSC CGL Finance – Mock Test M3 – Mixed Paper III Rehearsal
› SSC CGL Finance – Mock Test M2 – Part B: Economics & Governance
› SSC CGL Finance – Mock Test M1 – Part A: Finance & Accounts
› SSC CGL Finance – Role of Information Technology in Governance – Exam-Level Drill
› SSC CGL Finance – Role of Information Technology in Governance – Level 3 · Challenge
› SSC CGL Finance – Role of Information Technology in Governance – Level 2 · Exam Level · Paper III Sprint
Score: 0
Answered: 0 / 0
