UPSC Indian Economy – Chapter 14: Government Budgeting (28 MCQs)

The Constitution of India refers to the Union Budget as the:

Which Article of the Constitution provides for the Contingency Fund of India?

The corpus of the Contingency Fund of India at present is:

Which one of the following is a revenue receipt of the Government?

In the Union Budget 2026-27, the fiscal deficit is estimated at:

"Effective capital expenditure" is the Centre's capital expenditure plus:

Consider the following statements:
1. The Plan/non-Plan classification of expenditure was abolished from the Budget 2017-18.
2. The Railway Budget was merged with the Union Budget from 2017-18.
3. Since 2017, the Union Budget (an interim Budget in an election year) has been presented on 1 February.
Which of the statements given above are correct?

The first budget of British India was presented in 1860 by:

A vote on account is provided for under:

The Union Budget is prepared by the:

The Gender Budget Statement was first presented with the Union Budget of:

Assertion (A): Interest payments of the Government of India are not voted by the Lok Sabha.
Reason (R): Interest payments are financed from the Public Account.

Arrange the following in chronological order:
1. Separation of the Railway Budget
2. First Budget of independent India
3. Enactment of the FRBM Act
4. Merger of the Railway Budget with the Union Budget
Select the correct answer:

Consider the following statements about the Public Account of India:
1. It holds provident fund and small-savings deposits.
2. Withdrawals from it need an Appropriation Act.
3. It is provided for in Article 266 of the Constitution.
Which of the statements given above are correct?

The Committee whose recommendation led to ending the Plan/non-Plan distinction was chaired by:

Which budgeting approach requires every item of spending to be justified afresh each year?

Consider the following statements about the Rajya Sabha:
1. It can discuss the Annual Financial Statement.
2. It can vote on Demands for Grants.
3. It must return a Money Bill within 14 days.
Which of the statements given above are correct?

In the Union Budget 2026-27, central government debt is targeted to fall to:

Which committee examines the CAG's audit reports on the accounts of the Union Government?

Independent India's first Union Budget was presented by:

Consider the following statements:
I. Capital receipts create a liability or cause a reduction in the assets of the Government.
II. Borrowings and disinvestment are capital receipts.
III. Interest received on loans creates a liability of the Government.
Which of the statements given above are correct?

Along with the Budget, the Finance Minister also places other documents before the Parliament which include 'The Macro Economic Framework Statement'. The aforesaid document is presented because this is mandated by

Which of the following is/are included in the capital budget of the Government of India?
1. Expenditure on acquisition of assets like roads, buildings, machinery, etc.
2. Loans received from foreign governments.
3. Loans and advances granted to the States and Union Territories.
Select the correct answer using the code given below.

There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the government to reduce the deficit?
1. Reducing revenue expenditure
2. Introducing new welfare scheme
3. Rationalizing subsidies
4. Reducing import duty
Select the correct answer using the code given below.

There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit?
1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalizing subsidies
4. Expanding industries
Select the correct answer using the code given below.

With reference to the Union Government, consider the following statements.
1. The Department of Revenue is responsible for the preparation of the Union Budget that is presented to the Parliament.
2. No amount can be withdrawn from the Consolidated Fund of India without the authorization of the Parliament of India.
3. All the disbursements made from Public Account also need Authorization from the Parliament of India.
Which of the following statements given above is/are correct?

With reference to the Union Budget, which of the following is/are covered under Non-Plan Expenditure?
1. Defence Expenditure
2. Interest Payments
3. Salaries and pensions
4. Subsidies
Select the correct answer using the code given below: