1. Which of the following will not some under the proposed GST in India?
(a) Agricultural products
(b) Handicrafts
(c) Gems and Jewelleries
(d) Petroleum products
2. Deficit Financing means
(a) Difference of total expenditure and income by revenue from all sources
(b) Government spends in excess of revenues so that a budget deficit is incurred which is financed by the borrowings
(c) Difference in borrowing and external and internal resources
(d) Capital expenditure on items of public construction, public enterprises and public borrowings
3. Which one among the following is not a component of fiscal policy? [UPSC CAPF 2011]
(a) Taxation policy
(b) Public debt policy
(c) Trade policy
(d) Public expenditure policy
4. If we deduct grants for creation of capital assets from revenue deficit, we arrive at the concept of ? [UPSC CAPF 2013]
(a) primary deficit
(b) net fiscal deficit
(c) budgetary deficit
(d) effective revenue deficit
5. In the current pricing policy, the price of diesel in India consists of ? [UPSC CAPF 2013]
(a) Fuel component + Customs duty + Excise duty + Sales VAT + Dealer’s commission
(b) Fuel component + Excise duty + Sales VAT +Dealer’s commission
(c) Fuel component + Customs duty + Sales VAT +Dealer’s commission
(d) Fuel component + Customs duty + Excise duty on Dealer’s commission
6. Privatization includes ? [UPSC CAPF 2013]
(a) sale of public enterprises to private sector
(b) disinvestment of public enterprise equity
(c) participation of private sector in management in public sector enterprises.
(d) All of the above
7. Which one of the following has the largest contribution to the Gross Tax Revenue of Government of India in 2019-20 (BE)? [UPSC CAPF 2020]
(a) Goods and Services Tax
(b) Corporation Tax
(c) Customs
(d) Union Excise Duties
8. Consider the following items: [UPSC CSE 2018]
1. Cereal grains hulled
2. Chicken eggs cooked
3. Fish processed and canned
4. Newspapers containing advertising material
Which of the above items is/are exempted under GST (Goods and Services Tax)?
a) 1 only
b) 2 and 3 only
c) 1, 2 and 4 only
d) 1, 2, 3 and 4
9. Consider the following statements : [UPSC CSE 2017]
1. Tax revenue as a percent of GDP of India has steadily increased in the last decade.
2. Fiscal deficit as a percent of GDP of India has steadily increased in the last decade.
Which of the statements given above is/are correct ?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
10. What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’? [UPSC CSE 2017]
1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.
3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future.
Select the correct answer using the code given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
11. The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of [UPSC CSE 2016]
(a) mining operation by multinational companies in resource-rich but backward areas
(b) curbing of the tax evasion by multinational companies
(c) exploitation of genetic resources of a country by multinational companies
(d) lack of consideration of environmental costs in the planning and implementation of developmental projects
12. Which of the following is/are included in the capital budget of the Government of India? [UPSC CSE 2016]
1. Expenditure on acquisition of assets like roads, buildings, machinery, etc.
2. Loans received from foreign governments
3. Loans and advances granted to the States and Union Territories
Select the correct answer using the code given below.
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
13. There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit? [UPSC CSE 2016]
1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalizing subsidies
4. Reducing import duty
Select the correct answer using the code given below.
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2, 3 and 4
14. There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit? [UPSC CSE 2015]
1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalizing subsidies
4. Expanding industries
Select the correct answer using the code given below:
(a) 1 and 3 only
(b) 2 and 3 only
(c) 1 only
(d) 1, 2, 3 and 4
15. With reference to the Union Government, consider the following statements: [UPSC CSE 2015]
1. The Department of Revenue is responsible for the preparation of Union Budget that is presented to the Parliament.
2. No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India.
3. All the disbursements made from Public Account also need the authorization from the Parliament of India.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 2 only
(d) 1, 2 and 3
16. A decrease in tax to GDP ratio of a country indicates which of the following? [UPSC CSE 2015]
1. Slowing economic growth rate
2. Less equitable distribution of national income
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
17. With reference to Union Budget, which of the following, is/are covered under Non-Plan Expenditure? [UPSC CSE 2014]
1. Defence expenditure
2. Interest payments
3. Salaries and pensions
4. Subsidies
Select the correct answer using the code given below.
(a) 1 only
(b) 2 and 3 only
(c) 1, 2, 3 and 4
(d) None
18. The sales tax you pay while purchasing a toothpaste is a [UPSC CSE 2014]
(a) tax imposed by the Central Government
(b) tax imposed by the Central Government but collected by the State Government
(c) tax imposed by the State Government but collected by the Central Government
(d) tax imposed and collected by the State Government
19. In India, deficit financing is used for raising resources for [UPSC CSE 2013]
(a) economic development
(b) redemption of public debt
(c) adjusting the balance of payments
(d) reducing the foreign debt
20. Under which of the following circumstances may ‘capital gains’ arise? [UPSC CSE 2012]
1. When there is an increase in the sales of a product
2. When there is a natural increase in the value of the property owned
3. When you purchase a painting and there is a growth in its value due to increase in its popularity
Select the correct answer using the codes given below :
(a) 1 only
(b) 2 and 3 only
(c) 2 only
(d) 1, 2 and 3
21. Microfinance is the provision of financial services to people of low-income groups. This includes both the consumers and the self-employed. The service/services rendered under micro-finance is/are: [UPSC CSE 2011]
1. Credit facilities
2. Savings facilities
3. Insurance facilities
4. Fund Transfer facilities
Select the correct answer using the codes given below the lists:
(a) 1 only
(b) 1 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4
22. Which one of the following is not a feature of “Value Added Tax”? [UPSC CSE 2011]
(a) It is a multi-point destination-based system of taxation
(b) It is a tax levied on value addition at each stage of transaction in the production-distribution chain
(c) It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer
(d) It is basically a subject of the Central Government and the State Governments are only a facilitator for its successful implementation
23. Which one of the following statements appropriately describes the “fiscal stimulus”? [UPSC CSE 2011]
(a) It is a massive investment by the Government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth
(b) It is an intense affirmative action of the Government to boost economic activity in the country.
(c) It is Government’s intensive action on financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation.
(d) It is an extreme affirmative action by the Government to pursue its policy of financial inclusion.
