Fiscal deficit refers to the excess of
A Revenue expenditure over revenue receipts
B Total expenditure over total receipts excluding borrowings
C Capital expenditure over capital receipts
D Revenue receipts over revenue expenditure
Fiscal deficit shows the gap financed by borrowings.
Fiscal deficit indicates
A Inflation rate
B Government borrowing requirement
C Revenue surplus
D Tax evasion
It reflects how much the government needs to borrow.
Which of the following is included in fiscal deficit?
A Interest payments
B Borrowings
C Capital receipts
D Grants
Interest payments are part of total expenditure.
A high fiscal deficit may lead to
A Price stability
B Deflation
C Inflationary pressure
D Revenue surplus
Excess government spending raises aggregate demand.
Revenue deficit occurs when
A Revenue expenditure exceeds revenue receipts
B Capital expenditure exceeds capital receipts
C Total receipts exceed total expenditure
D Borrowings increase
It shows dissaving by the government.
Revenue deficit implies
A Asset creation
B Capital formation
C Government dissaving
D Reduction in public debt
Revenue deficit indicates borrowing for consumption.
Which deficit reflects consumption expenditure of government?
A Fiscal deficit
B Revenue deficit
C Primary deficit
D Budget deficit
Revenue deficit finances non-asset creating expenses.
Capital expenditure helps in reducing
A Revenue deficit
B Primary deficit
C Fiscal deficit
D Public debt
Asset creation improves future revenue.
Primary deficit is equal to
A Fiscal deficit – interest payments
B Revenue deficit – interest payments
C Budget deficit – revenue deficit
D Fiscal deficit + interest payments
It shows current fiscal stance excluding past debt burden.
Primary deficit indicates
A Past debt burden
B Current government spending policy
C Tax effort
D Inflation rate
It reflects present fiscal discipline.
Zero primary deficit means
A No fiscal deficit
B No revenue deficit
C Interest payments equal fiscal deficit
D No borrowing
Entire fiscal deficit is due to interest payments.
Which deficit is most inflationary?
A Revenue deficit
B Primary deficit
C Fiscal deficit
D Capital deficit
Fiscal deficit directly increases money supply.
A high revenue deficit is undesirable because it
A Creates assets
B Increases growth
C Leads to borrowing for consumption
D Reduces inequality
Borrowing should finance investment, not consumption.
Which deficit measures government dissaving?
A Fiscal deficit
B Capital deficit
C Primary deficit
D Revenue deficit
Revenue deficit shows excess of consumption spending.
Reduction in revenue deficit requires
A Higher capital expenditure
B Higher revenue receipts or lower revenue expenditure
C More borrowings
D Higher interest payments
Revenue balance improves with fiscal discipline.
Fiscal deficit can be financed by
A Tax revenue only
B Borrowings and money creation
C Capital receipts only
D Fees and fines
Borrowing and deficit financing bridge the gap.
Deficit financing refers to
A Borrowing from public
B Borrowing from foreign countries
C Borrowing from RBI
D Raising taxes
RBI borrowing increases money supply.
Excessive deficit financing may cause
A Deflation
B Price stability
C Inflation
D Budget surplus
Excess money supply fuels inflation.
Which deficit ignores interest payments?
A Revenue deficit
B Fiscal deficit
C Primary deficit
D Budget deficit
Primary deficit excludes interest burden.
Which deficit is used to judge fiscal discipline?
A Revenue deficit
B Fiscal deficit
C Primary deficit
D Capital deficit
It shows current government policy stance.
Budget deficit is defined as
A Total expenditure – total receipts
B Revenue expenditure – revenue receipts
C Fiscal deficit – borrowings
D Capital expenditure – capital receipts
Budget deficit includes all receipts and expenditures.
In India, budget deficit has been replaced by
A Revenue deficit
B Fiscal deficit
C Primary deficit
D Capital deficit
Fiscal deficit is now the key indicator.
Which deficit affects future generations most?
A Revenue deficit
B Fiscal deficit
C Primary deficit
D Transfer deficit
Borrowings increase future debt burden.
Fiscal responsibility implies
A Unlimited borrowing
B Fiscal discipline
C Higher subsidies
D More deficit financing
Responsible budgeting avoids unsustainable deficits.
FRBM Act aims to
A Increase subsidies
B Reduce fiscal deficit
C Increase borrowing
D Promote inflation
FRBM ensures fiscal prudence.
Fiscal federalism refers to
A Division of political power
B Division of financial powers
C Centralized taxation
D Uniform tax rates
It deals with sharing of revenues and responsibilities.
Fiscal federalism ensures
A Centralization of funds
B Financial autonomy of states
C Uniform taxation
D Reduced state expenditure
States get financial independence.
Which body recommends tax devolution between Centre and States?
A RBI
B Planning Commission
C Finance Commission
D GST Council
Finance Commission decides revenue sharing.
The Finance Commission is constituted every
A 3 years
B 4 years
C 5 years
D 6 years
It is constituted every five years.
Which tax is shared between Centre and States in India?
A Customs duty
B Income tax
C Corporation tax
D GST
GST is a shared tax under fiscal federalism.
Vertical imbalance refers to
A Inequality among states
B Centre-State revenue mismatch
C Local body deficit
D Tax evasion
Centre has more resources than states.
Horizontal imbalance refers to
A Centre-State imbalance
B Inequality among states
C Budget deficit
D Fiscal deficit
States differ in revenue capacity.
Which institution addresses horizontal imbalance?
A RBI
B GST Council
C Finance Commission
D NITI Aayog
Finance Commission recommends equalization transfers.
GST Council includes
A Only Centre
B Only States
C Centre and States
D RBI
GST Council is a cooperative federal body.
Fiscal federalism promotes
A Centralization
B Cooperative federalism
C Fiscal monopoly
D State dependency
Shared responsibility ensures cooperation.
Which transfer is unconditional?
A Grants-in-aid
B Loans
C Borrowings
D Taxes
Grants may be unconditional to support states.
Tax devolution refers to
A Tax collection
B Tax administration
C Sharing of tax revenue
D Tax evasion
Taxes collected are shared as per formula.
Fiscal imbalance leads to
A Price stability
B Regional inequality
C Budget surplus
D Fiscal discipline
Poor states suffer from lack of resources.
Which reform strengthened fiscal federalism in India?
A LPG reforms
B GST implementation
C Demonetization
D Banking reforms
GST unified tax structure and revenue sharing.
State finances are mainly supported by
A Customs duties
B Income tax
C GST and grants
D Corporation tax
States rely on shared taxes and transfers.
Which deficit shows borrowing for current consumption?
A Fiscal deficit
B Capital deficit
C Primary deficit
D Revenue deficit
Revenue deficit finances non-asset expenditure.
High fiscal deficit crowds out
A Government investment
B Public consumption
C Private investment
D Foreign investment
Government borrowing raises interest rates.
Reduction in fiscal deficit improves
A Inflation
B Investor confidence
C Revenue deficit
D Government expenditure
Fiscal discipline boosts confidence.
Which indicator shows government’s present fiscal effort?
A Revenue deficit
B Fiscal deficit
C Primary deficit
D Capital deficit
It excludes past interest burden.
A sustainable fiscal policy requires
A High deficits
B Controlled borrowings
C Unlimited spending
D High subsidies
Sustainable debt avoids future crises.
Excessive borrowing leads to
A Lower interest rates
B Debt trap
C Budget surplus
D Fiscal balance
Borrowing to repay old debt causes debt trap.
Which deficit is least harmful to growth?
A Revenue deficit
B Fiscal deficit for capital formation
C Primary deficit
D Budget deficit
Capital spending supports growth.
Fiscal deficit as percentage of GDP shows
A Inflation rate
B Fiscal sustainability
C Revenue collection
D Tax efficiency
Lower ratio indicates fiscal health.
Which deficit is targeted under FRBM Act?
A Revenue deficit
B Primary deficit
C Fiscal deficit
D Capital deficit
FRBM sets fiscal deficit targets.
Fiscal federalism strengthens
A Political centralization
B Economic unity with diversity
C State dependence
D Tax evasion
Shared fiscal powers maintain unity.