Government Budget

There is no content available!

To Access the full content, Please Purchase

  • Q1

    Primary deficit is the

    Marks:1
    Answer:

    fiscal deficit - interest payments.

    Explanation:
    Primary deficit means a position where total expenditure of the government excluding interest payments exceeds sum total of its revenue receipts and non-debt capital receipts. Primary deficit means the fiscal deficit minus interest payments.

     

    View Answer
  • Q2

    The main objective of government budget is

    Marks:1
    Answer:

    economic growth.

    Explanation:
    One of the main objective of government budget is economic growth. This can be achieved by controling population, reducing poverty and by reallocation of resources.
    View Answer
  • Q3

    The safe level of fiscal deficit is

    Marks:1
    Answer:

    5% of Gross Domestic Product.

    Explanation:
    Fiscal deficit is the difference between revenue and expenditure of the government. When expenditure exeeds revenue it is called deficit. 5% of Gross Domestic Product is the safest level of fiscal deficit decided by the government.
    View Answer
  • Q4

    Government budget is an

    Marks:1
    Answer:

    annual statement of the estimated receipts and expenditure.

    Explanation:
    The annual revenue and expenditure for a particular fiscal year is called Government Budget.
    View Answer
  • Q5

    Economy is performing well and the situations of inflation and deflation are not present in the economy then government will make

    Marks:1
    Answer:

    balanced budget

    Explanation:
    Balanced budget will not increase or decrease the aggeregate demand in economy because government will not increase or decrease public expenditure. Government will spend equal to its revenue earnings.
    View Answer