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:1
    Answer:

    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.
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  • Q2

    Loans to foreign government is a

    Marks:1
    Answer:

    capital expenditure.

    Explanation:
    Capital expenditure leads to creation of assets, and by giving loans to foreign government, government create assets.
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  • Q3

    Expenditure on defence of the country is considered as

    Marks:1
    Answer:

    unplanned expenditure.

    Explanation:
    Expenditure on defence of the country is an unplanned expenditure. Such expenditure is not specified under the five year plans.
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  • Q4

    The expenditure incurred by the government to fulfill its planned development is called

    Marks:1
    Answer:

    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.
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  • Q5

    The provision of expenditure every year according to plan proposals is called

    Marks:1
    Answer:

    Planned Expenditure

    Explanation:

    Plan expenditure is that public expenditure which represents current and investment outlays that arises due to plan proposals.

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