[Solved] Budget MCQ [Free PDF] - Objective Question Answer for Budget Quiz - Download Now! (2024)

1. Only 1
2. Only 2
3. Only 3
4. Both 1 & 2
5. Both 2 & 3

The correct answer is Only 3.

In News

• Cabinet approves Scheme of Sugar Subsidy for AAY Families under PDS.

Key Points

• The Union Cabinet chaired by the PM approved the extension of the Scheme of sugar subsidy for Antyodya Anna Yojna (AAY) families distributed through the PDS for two more years till 31 March 2026.
• The scheme gives a subsidy of Rs 18.50 per kg per month of sugar to AAY families of participating States.
• The scheme is expected to benefit about 1.89crore AAY families in India.
• The government of India is already giving free ration under Pradhan Mantri Garib Kalyan Anna Yojna (PM-GKAY).
• The sale of ‘Bharat Atta’, ‘Bharat Dal’ and Tomatoes and Onions at affordable and fair prices are the measures to ensure sufficient food in Plate of citizens beyond PM-GKAY also.
• With this approval, the Government will continue giving subsidies to participating States for the distribution of sugar to AAY families through PDS at the rate of One kg per family per month.

Additional Information

• Antyodya Anna Yojna (AAY)
  • ​It is the sponsored scheme of the Government of India to provide highly subsidised food to millions of the poorest families.
  • It was launched by the NDA government on 25 December 2000 and was first implemented in the Indian state of Rajasthan.

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1. Only B
2. Only C
3. Both A and B
4. Both B and C
5. All A, B and C

The correct answer is Only C.

In News

• Interim Budget 2024: Lakhpati Didi scheme to target 3 crore women.

Key Points

• Lakhpati Didi - 83lakh SHGs (self-help groups) with 9crore women are transforming the rural economic landscape with empowerment and self-reliance
• It has been decided to raise the target for such Lakhpati Didis from 2 crore to 3crore.
• The crucial linkage seems missing between enabling rural women entrepreneurs via targeted credit and mainstreaming more urban working women across sectors.
• The Budget could have connected the dots more cohesively between its SHG loan targets for rural women and the pronouncements on growing women's workforce entry.
• Matsya Sampada- Seafood exports since 2013-14 have doubled. The implementation of the PM Matsya Sampada Yojana will be stepped up.

Additional Information

• Lakhpati Didi
  • The Lakhpati Didi scheme is a government initiative that provides interest-free loans of INR 5 lakh to economically disadvantaged women.
  • The scheme's goal is to create three crore Lakhpati Didi across India's villages.
  • The Lakhpati Didi initiative encourages each SHG household to participate in multiple livelihood activities and value chain interventions.

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1. 55000
2. 60000
3. 65000
4. 70000
5. 75000

The correct answer is 75000.

In News

• Viksit Bharat: Centre to provide Rs 75,000 cr interest-free loan to states.

Key Points

• The Union government will provide Rs 75,000 crore as an interest-free loan for 50 years to support reforms by states for realising the vision of 'Viksit Bharat'.
• The government has set a vision to make India a developed nation by 2047.
• According to the Budget documents, total resources being transferred to the states, including the devolution of states' share, grants/loans and releases under centrally sponsored schemes in 2024-25 (Budget Estimates), stand at Rs 22,22,264 crore.
• This is an increase of Rs 4,13,848 crore over the actuals of the fiscal year 2022-23.

Additional Information

• Viksit Bharat' is that of a prosperous Bharat in harmony with nature, with modern infrastructure, and providing opportunities for all citizens and all regions to reach their potential.​

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1. Department of Economic Affairs
2. Department of Revenue
3. Department of Investment and Public Asset management
4. Department of Expenditure
5. None of these

The correct answer is the Department of Economic Affairs.

In News

• The Union Budget of India is prepared by the Economics Division of the Department of Economic Affairs.

Key Points

• The Union Budget of India is an Annual Document prepared by the Economics Division of the Department of Economic Affairs of the Finance Ministry under the Chief Economic Adviser (CEA), presenting a review of India's economic performance over the part year and outlining its future economic policy direction.
• The Budget-making process begins around six months before the Budget is presented.
• The Finance Ministry sends Budget Circulars to relevant ministries and departments, providing them with necessary instructions and guidelines.
• These circulars are then distributed among disbursing and field officers, who share details about their department's financial expenditures and receipts for the current and past fiscal year, as well as their financial requirements for the upcoming fiscal year.
• The data and estimates provided by ground-level officials are carefully examined by top officials within their departments.
• After thorough analysis, the Finance Ministry allocates revenues to various administrative ministries and develops new public welfare schemes.

Additional Information

• Ministry of Finance
  • ​It is a ministry within the Government of India concerned with the economy of India, serving as the Treasury of India.
  • Current Finance Minister - Nirmala Sitharaman
• Department of Economic Affairs
  • The Department of Economic Affairs is the nodal agency of the Union Government to formulate and monitor the country's economic policies and programmes having a bearing on domestic and international aspects of economic management.

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1. 9-11 years
2. 9-14 years
3. 10-13 years
4. 12-16 years
5. 15-19 years

The correct answer is 9-14 years.

In News

• Budget 2024: Gov to promote HPV vaccination for girls aged 9-14 to prevent cervical cancer.

Key Points

• Union Finance Minister Nirmala Sitharaman in her interim budget announcedthat the government will encourage vaccination for girls in the age group of 9 to 14 years for the prevention of cervical cancer.
• Sitharaman emphasised the government's plans to set up more medical colleges and announced that the government aims to serve the people through improved healthcare services.
• The government plans to set up more medical colleges by utilising the existing hospital infrastructure under various departments.
• The newly designed U-WIN platform for managing immunization and intensified efforts of Mission Indradhanush will be rolled out expeditiously throughout the country.

Additional Information

• Cervical Cancer
  • ​It is a cancer arising from the cervix.
  • It is due to the abnormal growth of cells that can invade or spread to other parts of the body.
  • Symptoms may include abnormal vagin*l bleeding, pelvic pain or pain during sexual intercourse.

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Budget Question 6

1. 140%
2. 125%
3. 137%
4. 100%

Budget Question 6 Detailed Solution

The correct answer is137%.

Key Points

• The allocation towards health and well-being was increased by 137% over the previous year in Union Budget 2021-22.
• According to analysts, one of the sectors that have continually been neglected is "health."
• However, in her Budget 2021-22, Union Finance Minister Nirmala Sitharaman announced a 137 percent increase in the allocation for health from the previous year's budget estimate of over Rs. 94,000 crore (Rs. 94,452 crore) and a 118 percent increase from the previous year's revised budget of over Rs. 1.02 lakh crore (Rs. 1,02,873 crore).

Important Points

• The 2.23 lakh crore spending in Budget 2021 comprises allocations to the Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha, and hom*oeopathy, as well as the Ministry of Health and Family Welfare (MoHFW), which is the country's focal ministry for healthcare (AYUSH).
• To calculate the spending for health and wellness, the Finance Minister combined the amounts given under several categories of other ministries.

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Budget Question 7

1. 5.1
2. 7.6
3. 6.8
4. 7.2

Budget Question 7 Detailed Solution

The correct answer is 6.8.

• As per Union Budget 2021-22, the Fiscal deficit is estimated at 6.8 percent of GDP in 2021- 22.
• The fiscal deficit is targeted at 6.8% of GDP in 2021-22, down from the revised estimate of 9.5% in 2020-21 (4.6% in 2019-20).
• The government aims to steadily reduce the fiscal deficit to 4.5% of GDP by 2025-26.
• The difference between total revenue and total expenditure of the government is termed a fiscal deficit. It is an indication of the total borrowings needed by the government. While calculating the total revenue, borrowings are not included.

Additional Information

• The Fiscal Deficit in 2022-23 is estimated at 6.4 percent of GDP.
• The Fiscal Deficit of the Government for 2022-23 is estimated to be Rs. 16, 61,196 crores.
• The Revised Estimates for 2021-22 indicate a Fiscal Deficit of Rs. 15, 91,089 crores as against the Budget Estimates of Rs. 15, 06,812 crores.

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Budget Question 8

1. Budget 2020-2021
2. Budget 2019-2020
3. Budget 2021-2022
4. Budget 2018-2019

Budget Question 8 Detailed Solution

The correct answer isBudget 2021-2022.

Key Points

• The Union Minister for Finance & Corporate Affairs, Nirmala Sitharaman presented the Union Budget 2021-22 in Parliament on February 1, 2021,which is the first budget of this new decade and also a digital one in the backdrop of the unprecedented COVID-19 crisis.
• Minister stated thatBudget proposals will further strengthen the Sankalp of Nation First, Doubling Farmer’s Income, Strong Infrastructure, Healthy India, Good Governance, Opportunities for youth, Education for All, Women Empowerment, and Inclusive Development among others.
• This is the First Paperless Budget in India.

Additional Information

• The Budget proposals for 2021-22 rest on 6 pillars:
  • Health and Well-being
  • Physical & Financial Capital, and Infrastructure
  • Inclusive Development for Aspirational India
  • Reinvigorating Human Capital
  • Innovation and R&D
  • Minimum Government and Maximum Governance
• There is a substantial increase in investment in Health Infrastructure and the Budget outlay for Health and well-being isRs. 2,23,846crore in BE 2021-22 as against this year’s BE ofRs. 94,452 crore,an increase of 137 percent.
• No changes in personal income tax slabs and a slew of hikes in customs duty to benefit Make in India, the Budget speech focussed on the Centre's Atmanirbhar Bharat vision.
• Most money spent sectors in this budget areHealth and Infrastructure.
• This is the 91^stBudget of India.

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Budget Question 9

1. Rs. 15,000
2. Rs. 30,000
3. Rs. 25,000
4. Rs. 10,000

Budget Question 9 Detailed Solution

The correct answer is Rs. 30,000.

Key Points

• In the union budgetof India 2021-22, a proposal to enhance the Contingency Fund of India from ₹500 crore to ₹30,000 crores was introduced through a Finance Bill.
• The government has also altered the spending norms of the Contingency Fund of India.
• An amount equivalent to 40% of the Fund corpus shall be placed at the disposal of the Secretary, Ministry of Finance, Department of Expenditure for the purpose of meeting unforeseen expenditures like natural disasters and other emergencies.
• The remaining Contingency Fund releases exceeding the given limit shall be made with the approval of the Secretary to the Government of India, Department of Economic Affairs, after the approval of the Secretary to the Government of India, Department of Expenditure.

Additional Information

• The contingency fund was made to tackle unnatural conditions like disasters and other unforeseen emergency expenses.
• The fund is held by the Department of Economic Affairs on behalf of the President of India and it can be operated by executive action.
• The fund can be increased through a Finance Bill when Parliament is in session or through an ordinance if the house is not in session.
• The Contingency Fund of India is established under Article 267(1) of the Indian Constitution under the Contingency Fund Of India Act 1950.

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Budget Question 10

1. 11.9 percent
2. 19 percent
3. 12.9 percent
4. 10.9 percent

Budget Question 10 Detailed Solution

The correct answer is11.9 percent.

Key Points

• Budgetary allocation for the Culture Ministry for 2022-2023 has been increased by 11.9 per cent compared to the Budget Estimate (BE) for 2021-2022.
• The Archaeological Survey of India (ASI) has beenallocated Rs 1,080 crore, 35 per cent of the total amount.
• Rs 3,009.05 crore has been allocatedfor the Culture Ministry, up from Rs 2,687.99 crore in the previous budget.
• The present Union Culture Minister is Shri G.K Reddy (As of Oct 2022).

Additional Information

• In the Union Budget 2022, The Finance Minister proposed to cover villages on the Northern border undertheVibrant Villages Programme.
• She stated that border villages with a sparse population, limited connectivity, and infrastructure often get left out of the development gains.
• Such villages on the northern border will be covered under the new Vibrant Villages Programme.
• An allocation ofRs 60,000 crorehas been made to cover3.8 crore households in 2022-23 under Har Ghar, Nal Se Jal Scheme.
• Finance Minister said that the current coverage ofHar Ghar, Nal Se Jal is 8.7 crores.
  • Out of which5.5 crore households were provided tap water in the last 2 years itself.
• Nirmala Sitharaman(As of Oct 2022). also announced anallocation of Rs 48,000 crorefor thecompletion of 80 lakh houses.
  • ​For the identified eligible beneficiaries ofPM Awas Yojana, both Rural and Urban, in 2022-23.
• The Central Government will work with the state governments toreduce of time required for all land and construction-related approvals.
• It will also work for promoting affordable housing for the middle class and Economically Weaker Sections (EWS) in urban areas.

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Budget Question 11

1. Fiscal Deficit of 3.5% of GSDP allowed forstates.
2. Budgetestimates 2023-24 fortotalexpenditure is Rs. 55 lakh Cr.
3. Fiscal Deficit 2025-26, the target is to bebelow 5.5%.
4. Twenty years interest free loans to states.

Budget Question 11 Detailed Solution

The correct answer is Option 1.

Key PointsThe Union Budget 2023-24

• The Union Budget 2023-24 was presented on February 1, 2023, by the Finance Minister Ms. Nirmala Sitharaman.
• It proposes to spend Rs 45,03,097 crore in the financial year.
• Out of the total expenditure, revenue expenditure is estimated to be Rs 35,02,136 crore (1.2% increase from revised estimates of 2022-23). Hence statement 2 is incorrect.
• Interest expenditure is 41% of revenue receipts.
• Capital expenditure is estimated to be Rs 10,00,961 crore, a 37.4% increase from revised estimates for 2022-23.
• The revenue deficit in 2023-24 is targeted at 2.9% of GDP, which is lower than the revised revenue deficit of 4.1% in 2022-23.
• The fiscal deficit in 2023-24 is targeted at 5.9% of GDP, lower than the revised fiscal deficit of 6.4% in 2022-23.
• Continuing the path of fiscal consolidation, the Government intends to bring the fiscal deficit below 4.5 percent of GDP by 2025-26.Hence statement 3 is incorrect.
• Under the Finance Bill, 2023, a number of changes have been made to the new tax regime.
• The income limit to avail of a rebate and not pay any taxes has increased from Rs 5 lakh to Rs 7 lakh. Further, the number of tax slabs has been reduced from six to five.
• The surcharge for the highest slab (income over Rs 5 crore) has been cut from 37% to 25%.
• The Finance Minister stated that the States will be allowed a fiscal deficit of 3.5 percent of GSDP of which 0.5 percent will be tied to power sector reforms.Hence statement 1 is correct.
• States will also be provided a fifty-year interest-free loan.
• The entire fifty-year loan to states has to be spent on capital expenditure within 2023-24.

Policy Highlights

• Infrastructure: The scheme providing 50-year interest-free loans to state governments will be made available in 2023-24 also with an outlay of Rs 1.3 lakh crore. Hence statement 4 is incorrect.
• 100 critical transport infrastructure projects for last and first-mile
• connectivity for various sectors such as ports, coal, and steel will be taken up.
• This will have an investment of Rs 75,000 crore including Rs 15,000 crore from private sources.

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Budget Question 12

1. 5,000 km
2. 15,000 km
3. 25,000 km
4. 55,000 km

Budget Question 12 Detailed Solution

The correct answer is25,000 km.

Key Points

• Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2022-23, on February 01, 2022, informed the Parliament that the National Highways network will be expanded by 25,000 km in 2022-23.
• Rs 20,000 crore will be mobilized through innovative ways of financing to complement the public resources.
• This will provide for efficient movement of goods through different modes, reducing logistics cost and time, assisting just-in-time inventory management, and eliminating tedious documentation.
• An open-source mobility stack, for organizing seamless travel of passengers will also be facilitated.​

Additional Information

• Budget is the government’s blueprint on expenditure, taxes it plans to levy, and other transactions which affect the economy and lives of citizens.
• According to Article 112 of the Indian Constitution, the Union Budget of a year is referred to as the Annual Financial Statement (AFS).
• The Budget Division of the Department of Economic Affairs in the Finance Ministry is the nodal body responsible for preparing the Budget.​
• Components of the Budget:
  • ​​​ There are three major components expenditure, receipts, and deficit indicators.
  • Depending on the manner in which they are defined, there can be many classifications and indicators of expenditure, receipts, and deficits.

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Budget Question 13

1. 18 lakh crore
2. 15 lakh crore
3. 13.68 lakh crore
4. 10.68 lakh crore

Budget Question 13 Detailed Solution

The correct answer is10.68 lakh crore.

Key Points

• Effective capital expenditure of the Central government is estimated at Rs 10.68 lakh crore in 2022-23.
• It is about 4.1 percent of the Gross Domestic Product (GDP) of the country.
• The public capital expenditure increased sharply by 35.4 percent to 7.50 lakh crore in 2022-23 from Rs 5.54 lakh crore.
• The government has allocated Rs 1 lakh crore to assist the state government to accelerate overall investments in the economy in 2022-23.​

In News

• The Union Minister for Finance & Corporate Affairs,Smt Nirmala Sitharamantabled the Union Budget 2022-23 in Parliament today.
• The key highlights of the budget are as follows:
  • ​India’s economic growth is estimated at9.2%to be the highest among all large economies.
  • 60 lakh new jobsto be created under the productivity linked incentive scheme in 14 sectors.
  • PLI Schemes have the potential to create an additional production of Rs 30 lakh crore.
  • Entering Amrit Kaal, the 25 years long lead up to India @100, the budget provides the impetus for growth along withfour priorities:
    • PM GatiShakti
    • Inclusive Development
    • Productivity Enhancement & Investment, Sunrise opportunities, Energy Transition, and Climate Action
    • Financing of investments

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Budget Question 14

1. 15
2. 20
3. 10
4. 25

Budget Question 14 Detailed Solution

The correct answer is 20.

Key Points

• Union Budget 2021-22 recommends voluntary scrapping of old vehicles.
• It is based on fitness tests over the period of20 yearsfor personal vehicles and 15 years for commercial vehicles.
• This will help in reducing old and polluting vehicles off the road.​

Important Points

• Highlights of the budget 2021-22
  • ​Rs. 2,23,846croreoutlay forHealth and Wellbeingin 2021-22 as againstRs. 94,452 croresin 2020-21 anincrease of 137%.
  • Rs. 35,000 croresfor COVID-19 vaccinein 2021-22.
  • Rs. 64,180 croreoutlay over 6 years forPM AtmaNirbhar Swasth Bharat Yojana.
  • Rs. 2,87,000 croreover5 years forJal Jeevan Mission (Urban)- to be launched with an aim to provide:
    • 2.86 crore household tap connections.
    • Universal water supply in all 4,378 Urban Local Bodies.
    • Liquid waste management in 500 AMRUT cities.
    • Mega Investment Textiles Parks(MITRA)scheme, in addition to PLI.
      • 7 Textile Parksto be established over 3 years.
  • Under theRs. 5.35 lakh croreBharatmala Pariyojana,more than13,000 km length of roads worth Rs. 3.3 lakh crorewas awarded for construction.
  • Toincrease the permissibleFDI limit from 49% to 74%and allow foreignownership and control with safeguards.
  • Agricultural credittarget enhanced toRs. 16.5 lakh crorein FY22- animal husbandry, dairy, and fisheries to be the focus areas.
  • Rural Infrastructure Development Fundto beenhanced toRs. 40,000 croresfrom Rs. 30,000 crores.
  • Todouble the Micro Irrigation Fund to Rs. 10,000 crores.
  • ‘Operation Green Scheme’to be extended to22 perishable products,to boost value addition in agriculture and allied products.

Additional Information

• AboutBudget 2022-23.
  • India’s economic growth is estimated at9.2%to be the highest among all large economies.
  • 60 lakh new jobsare to be created under the productivity-linked incentive scheme in 14 sectors.
  • PLI Schemes have the potential to create anadditional production of Rs 30 lakh crore.
  • Entering Amrit Kaal, the 25-year-long lead-up to India @100,the budget provides the impetus for growth along with four priorities:
    • PM Gati Shakti
    • Inclusive Development
    • Productivity Enhancement & Investment,
    • Sunrise opportunities,
    • Energy Transition, and Climate Action.Financing of investments
  • National HighwaysNetwork to be expanded by25000 Kmin 2022-23.
  • Rs. 2.37 lakh crore direct payment to 1.63 crore farmersfor procurement ofwheat and paddy.
  • Rs. 48,000 croresallocated for completion of80 lakh housesin 2022-23 under PM Awas Yojana.
  • Introduction ofDigital Rupee by the Reserve Bank of Indiastarting 2022-23.
  • ​Total expenditure in 2022-23 is estimated at Rs. 39.45 lakh crore.
  • Total receipts other than borrowings in 2022-23 are estimated at Rs. 22.84 lakh crore.
  • The fiscal deficit in 2022-23 is estimated at 6.4% of GDP.

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Budget Question 15

1. 1965–66
2. 1972–73
3. 1948–49
4. 1950–51

Budget Question 15 Detailed Solution

The correct answer is1950-51.Key Points

• The first Economic Survey of India was presented in1950–51.
• Economic Survey is areport of the government onthe state of the economyof the country during the last one year.
• It is prepared by theDepartment of Economic Affairs, under theMinistry of Finance.
• Chief Economic Advisorreleases the Economic Survey.

Additional Information

• At first, it was released along with the Union Budget but later it was separated from the budget in 1964to give a better understanding of the budget proposals.
• It isreleased one day before the Union Budget.
• Now it is presented in2 volumes.
• It has noconstitutional backing. Its findings and suggestions are not binding on the government.
• First Chief Economic Advisortothe governmentwasMr. J.J. Anjaria.
• ThecurrentChief Economic Advisor isKrishnamurthy Subramanian.

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