MCQ
upsc-p1-current-affairs-economy-budget-survey MCQ - Practice Questions with Answers
Solve 10 upsc-p1-current-affairs-economy-budget-survey questions for RAS/RPSC preparation.
Practice questions
Q1Consider the following statements about institutions of fiscal accountability: 1. The Comptroller and Auditor General audits after expenditure rather than approving grants before spending. 2. The Public Accounts Committee gives prior approval to Budget allocations. 3. The Estimates Committee examines economy and efficiency and may suggest administrative improvements. Which of the statements given above are correct? Select the correct answer using the code given below.
Statements 1 and 3 are correct. The Public Accounts Committee examines appropriation accounts, finance accounts and CAG reports after expenditure; it does not grant prior approval to Budget allocations.
Q2Consider the following statements about fiscal federal institutions: 1. The Finance Commission under Article 280 recommends distribution of net tax proceeds and principles governing grants-in-aid. 2. The Finance Commission recommends Goods and Services Tax rates under Article 279A. Which one of the following is correct?
Statement 1 correctly states the Finance Commission's role under Article 280. Statement 2 is incorrect because GST recommendations, including rates, belong to the GST Council framework under Article 279A.
Q3With reference to reports and composite indices, consider the following statements: 1. The data year underlying an index may differ from its release year. 2. A country's rank can change because of the performance of other countries even when its own score improves. 3. A composite index provides complete evidence because weighting choices, missing data and modelled estimates do not affect its result. Which of the statements given above are correct? Select the correct answer using the code given below.
Statements 1 and 2 correctly distinguish data year from release year and rank from score. Statement 3 is incorrect because weighting, missing data, modelled estimates, sample quality and assumptions can affect a composite index; it is not complete evidence by itself.
Q4Match List I with List II: List I (Institution) (a) Public Accounts Committee (b) Estimates Committee (c) Finance Commission (d) Comptroller and Auditor General List II (Function) 1. Recommends distribution of net tax proceeds and principles of grants-in-aid 2. Examines appropriation accounts, finance accounts and CAG reports 3. Checks legality, regularity, propriety or performance, as applicable 4. Suggests economies or administrative improvements within policy limits Select the correct answer using the code given below.
The Public Accounts Committee examines accounts and CAG reports; the Estimates Committee suggests economies and administrative improvements; the Finance Commission recommends tax distribution and grant principles; and the Comptroller and Auditor General checks legality, regularity, propriety or performance, as applicable. Hence option B is correct.
Q5Arrange the following developments in chronological order, beginning with the earliest: 1. The Economic Survey began to be presented separately from the Budget. 2. The first merged Railway and General Budget was presented. 3. The first Economic Survey was presented as part of the Budget papers. 4. The Cabinet approved merger of the Railway Budget, advancement of the Budget date and removal of plan/non-plan classification. Select the correct answer using the code given below.
The first Economic Survey was presented in 1950-51 as part of the Budget papers; it was separated from the Budget after 1964. The Cabinet approved the Budget reforms in 2016, and the first merged Budget was presented in 2017. Thus option D gives the order 3-1-4-2.
You've seen 5 of 10 sample questions
Unlimited practice on upsc-p1-current-affairs-economy-budget-survey comes with the RAS Test Series + Practice pack or Gate Pass.
More questions
6Arrange the following stages of the Union Budget process in their usual chronological order: 1. Departmentally Related Standing Committees examine ministry-wise demands. 2. The Appropriation Bill includes voted grants and charged expenditure. 3. Parliament holds a general discussion on the Budget as a whole. 4. Demands for Grants are voted in Lok Sabha. Select the correct answer using the code given below.
7Match List I with List II: List I (Constitutional provision) (a) Article 266 (b) Article 267 (c) Article 281 (d) Article 279A List II (Subject) 1. Contingency Funds 2. Explanatory memorandum on Finance Commission recommendations laid before Parliament 3. Goods and Services Tax Council 4. Consolidated Funds and Public Accounts Select the correct answer using the code given below.
8With reference to parliamentary grants and appropriation, consider the following statements: 1. Supplementary, additional and excess grants are covered by Article 115. 2. Vote on account, vote of credit and exceptional grants are covered by Article 116. 3. Article 114 permits withdrawal from the Consolidated Fund of India without appropriation made by law. Which of the statements given above are correct? Select the correct answer using the code given below.
9Consider the following statements about the Economic Survey: 1. It is an annual Ministry of Finance document prepared under the guidance of the Chief Economic Adviser. 2. It authorises withdrawal from the Consolidated Fund of India for the expenditure discussed in it. Which one of the following is correct?
10Consider the following statements about deficit indicators: 1. Effective revenue deficit is revenue deficit minus grants for creation of capital assets. 2. Primary deficit is fiscal deficit minus interest payments. 3. Public debt is an annual flow, whereas fiscal deficit is accumulated past borrowing. Which of the statements given above are correct? Select the correct answer using the code given below.