GK Question and Answers on Union Budget 2021

Union Budget 2021 has been released and there are many new announcements that saw the light of the day. While many assets were disinvested, gates were opened for Foreign Direct Investment, FDI in many other sectors. Take a look at the questions below to get complete awareness on the Budget this year. 

GK Quiz on Union Budget 2022

1. Who presents the Budget in the Parliament?

1. Home Minister
2. Prime Minister
3. Finance Minister
4. President of India

Ans. c

Explanation: The Union Budget is presented by the Finance Minister in the Parliament

2. Regarding Budget 2021 choose the correct statement

i) India’s fiscal deficit is set to jump to 9.5 per cent of Gross Domestic Product in 2020-21

ii) No tax reforms have been brought this year

1. Only i
2. Only ii
3. Both i and ii
4. None of the above 

Ans. a

Explanation: Sitharaman announced the scrapping of income tax for senior citizens under certain conditions. As per the FM, India’s fiscal deficit is set to jump to 9.5 per cent of Gross Domestic Product in 2020-21 as per Revised Estimates. 

3. Sitaraman has presented the Budget for how many years now?

1. 2
2. 3
3. 4
4. 5

Ans. b

Explanation: This was Sitharaman’s third budget under the National Democratic Alliance (NDA) government led by Prime Minister Narendra Modi.

4. Who presented India’s first-ever Budget?

1. James Wilson
2. C Rajgopalachari
3. Jawaharlal Nehru
4. Lord Mountbatten

Ans. a

Explanation: James Wilson, the British economist presented the budget on February 18, 1860. He introduced three kinds of taxes- income tax, license tax and tobacco duty

Also Read | Union Budget 2022: 21 Interesting Facts About Indian Budget

5. Regarding Agri-infra cess imposed in this Budget find the correct statement

i) Agri infra cess of 2.5% imposed on gold, silver bars have been imposed

ii) Agri infra cess of 100 pc imposed on alcoholic beverages

1. Only i 
2. Only ii
3. Both i and ii
4. None of the above

Ans. c 

Explanation: Agri infra cess of 2.5% imposed on gold, silver bars; 35% on apples; 5% on specified fertilizer; 1.5% on coal, lignite and peat. Agri infra cess of 100 pc imposed on alcoholic beverages

6. How much customs duty has been levied on cotton and silk in the Budget 2021

1. 10% and 15%
2. 11% and 16%
3. 15% and 10%
4. 8% and 15%

Ans. a

Explanation: The Finance Minister informed that the customs duty on cotton increased to 10%, silk to 15%

7. Regarding the proposals set forward in the Bidegt 2021 choose the correct statement]

i) Government has proposed to introduce the National Nursing and MIdwifery Commission Bill

ii) Government also proposed national language translation initiative

1. Only i
2. Only ii
3. Both i and ii
4. None 

Ans. c

Explanation: There have been several proposals made by the Government. A few of them are listed below

• Setting up of a conciliatory mechanism for quick resolution of contractual disputes
• Introducing National Nursing and Midwifery Commission Bill
• The national language translation initiative

8. The senior citizens had to file income tax but now the income tax filing for what age has been removed?

1. 70 years
2. 72 Years
3. 60 years
4. 75 years

Ans. d

Explanation: The government has given relief measures for senior citizens by removing the need to file income tax returns for those aged over 75 years. 

9.Choose the correct statement regarding the Budget 2021 

1. i) Government announced to increase the maximum threshold paid-up capital of small companies from Rs 50 lakh to Rs 2 crore
2. ii) The government has also increased the threshold of maximum turnover from Rs 2 crore to Rs 20 crore.

1. Only i
2. Only ii
3. Both i and ii
4. None of the above 

Ans. c

Explanation: Government has planned to increase the maximum threshold paid-up capital of small companies from Rs 50 lakh to Rs 2 crore. In this budget, the government has also increased the threshold of maximum turnover from Rs 2 crore to Rs 20 crore.

10. Where is the Budget introduced in India every year?

1. Rajya Sabha
2. Lok Sabha 
3. Joint session
4. Rashtrapati Bhawan

Ans.b

Explanation: The budget is presented by means of the Finance Bill and Appropriation bill. It has to be passed by Lok Sabha before it can come into effect on 1st  April, the start of India's financial year.

Also Read | What people are searching the most on Google regarding Budget 2022?

Play GK Quiz for today here