Fiscal Policy - Public Expenditure and Debt
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Q1
Money spend on minting of coins and printing of currency notes is a
Marks:1Answer:
non-development expenditure.
Explanation:
Non-development expenditure is not concerned with the economic development activity, and money spend on minting of coins and printing of currency notes is not for development purpose. -
Q2
Loans to foreign government is a
Marks:1Answer:
capital expenditure.
Explanation:
Capital expenditure leads to creation of assets, and by giving loans to foreign government, government create assets. -
Q3
Expenditure on defence of the country is considered as
Marks:1Answer:
unplanned expenditure.
Explanation:
Expenditure on defence of the country is an unplanned expenditure. Such expenditure is not specified under the five year plans. -
Q4
The expenditure incurred by the government to fulfill its planned development is called
Marks:1Answer:
plan expenditure.
Explanation:
Plan expenditure refers to that expenditure which is incurred by the government to fulfill its planned development programmes which are laid down under the five year plans. -
Q5
The provision of expenditure every year according to plan proposals is called
Marks:1Answer:
Planned Expenditure
Explanation:
Plan expenditure is that public expenditure which represents current and investment outlays that arises due to plan proposals.