The budget is also called Annual Financial Statement. Indian budget is presented every year by the Finance Minister in Parliament. Through this budget statement; the government displays its revenue and expenditure of the previous year and its budget estimates for the upcoming year.
In this article Jagran Josh has prepared a set of 10 questions based on Indian Union budget 2019-20. This set will be useful for various competitive examinations like IAS / PCS / SSC / Banking to be held in India.
1. Interim budget is also known as....
(a) Mini budget
(b) Vote on Account
(c) Both a and b
(d) None of these
Explanation: The last budget of any government is termed as an interim budget or a vote on account or a mini budget.
2. Which article of the Constitution envisages Budget?
(a) Article 280
(b) Article 110
(c) Article 360
(d) Article 112
Explanation: Article 112 of the Indian Constitution envisages the Annual Financial Statement of the government. This annual statement displays the revenue and expenditure of the last year and estimates of revenue and expenditure for the coming financial year.
3. In budget 2019-20, the government set the target to distribute....... LPG connections under the Ujjawala Yojna.
(a) 6 cr
(b) 10 cr
(c) 5 cr
(d) 8 cr
Explanation: The government has set the target to distribute 8 cr LPG cylinders to the households under the Ujjwala scheme. So far Government has distributed 6 cr cylinders under this scheme.
4. What is the target (in terms of GDP) of Fiscal Deficit for FY 2019-20?
Explanation: The target of fiscal deficit for 2019-20 is 3.4% of GDP while for next year it is estimated to be 3.1% of GDP.
5. Which statement is not correct about budget 2019-20?
(a) The number of new income-tax filers increased in 2017-18, taking the total income tax returns filed to 6.84 crore, up 26% from previous year.
(b) Payment of gratuity has been increased from Rs. 10 lakh to Rs. 20 lakhs.
(c) Government has introduced the Prime Minister 'Kisan Samman Nidhi Yojana'. This scheme will be in effect from 1st January, 2019.
(d) The amount allocated for the defense sector has exceeded 3 lac cr for the first time.
Explanation: The Government has launched the Prime Minister's Farmers' Welfare Fund Scheme. This scheme will be applicable from 1 December 2018. In this scheme, 6000 rupees per year will be given to farmers who have less than 2 hectares of land. The Central Government will bear the full expenditure of Rs. 75 thousand crore on this scheme. This scheme will benefit about 12 crore farmers in the country.
6. What is the biggest item of government expenditure in budget 2019-20?
(a) Loan repayment
(b) Defense expenditure
(c) Expenditure on Central Plans
(d) Share of the states in taxes and fees
Explanation: In 2019-20, the biggest item of government expenditure is Share of the states in taxes and fees. The Central Government has to spend 23% of its total expenditure in the form of 'taxes and fees'.
7. What is the biggest item of income of the central government in 2019-20 budget?
(a) Goods and Service Tax
(b) Corporation tax
(c) Borrowings and other liabilities
(d) a and b both are equal
Explanation: In 2019-20, the biggest items of government's revenue receipt are the GST and corporation tax. The Government receives 21%-21% income from each tax.
8. Which of the following statements is true?
(a)Revenue deficit is estimated to be 3.4% of GDP in the budget
(b) The fiscal deficit is estimated to be targeted at 3.1% of GDP.
(c) In the budget estimates, the target is to prevent the primary deficit to 0.2% of GDP.
(d) All the above mentioned statements are correct.
Explanation: The government has set a target to keep revenue deficit at 2.2% of GDP in the budget estimates. The fiscal deficit has been targeted to confine at 3.4% of GDP and primary deficit is targeted to be 0.2% of GDP.
9. The rate which the income tax is imposed in India is called....
(a) Digressive rate
(b) Progressive rate
(c) Regressive rate
(d) Proportionate rate
Explanation: In India, income tax is imposed at digressive rate. Under the digressive rate the rate of tax increases as the income increases initially while after a certain level of income it becomes proportionate.
In India, the rate of tax on income up to Rs. 10 lakh increases while tax rate becomes proportionate after the 10 lac. However, the Government imposes a surcharge on those earning more than Rs.50 lakh.
10. How much cess is imposed currently by the Central Government?
Explanation: There are five types of cess are imposed in India. Their names are; Infrastructure Cess, Education Cess, Clean India Cess, Agriculture Welfare Cess and Health and Education Cess. Total rate of the all these Cess became 4%.