With the Union Budget 2025 just around the corner, it's time to refresh your understanding of this pivotal financial statement. The Union Budget outlines the government’s revenue and expenditure plans for the upcoming fiscal year, impacting every sector of the economy and every citizen. This year’s budget is particularly anticipated as the government aims to address inflation, boost infrastructure, and strengthen welfare initiatives in a post-pandemic recovery phase.
Here are MCQ questions to test your knowledge about the Union Budget. These questions will help you understand the country's budget in a better format as well as help you prepare for different competitive exams.
READ| GK Quiz on Delhi Metro: Track Your Knowledge of Delhi Metro with This Fun Quiz!
1. Who presents the Union Budget of India?
a) Prime Minister
b) Finance Minister
c) President of India
d) Governor of RBI
Answer: b) Finance Minister
Explanation: The Finance Minister of India presents the Union Budget in Parliament every year, detailing the government's revenue and expenditure plans.
2. When is the Union Budget usually presented?
a) 1st January
b) 26th January
c) 1st February
d) 15th March
Answer: c) 1st February
Explanation: Since 2017, the Union Budget is presented on February 1st to allow implementation from the beginning of the financial year.
3. What is the fiscal year period in India?
a) April 1 to March 31
b) January 1 to December 31
c) June 1 to May 31
d) October 1 to September 30
Answer: a) April 1 to March 31
Explanation: The Indian fiscal year starts on April 1 and ends on March 31 of the following year, aligning with tax and accounting practices.
READ| GK Quiz on Indian Army: Can You Ace This Indian Army Challenge? Test Your Skills
4. What is the fiscal deficit?
a) Total tax collected by the government
b) Difference between imports and exports
c) Total expenditure minus total receipts (excluding borrowings)
d) None of the above
Answer: c) Total expenditure minus total receipts (excluding borrowings)
Explanation: Fiscal deficit shows the amount the government needs to borrow to meet its spending commitments.
5. Who was the first Finance Minister to present the Union Budget of independent India?
a) R. K. Shanmukham Chetty
b) Jawaharlal Nehru
c) Morarji Desai
d) C. D. Deshmukh
Answer: a) R. K. Shanmukham Chetty
Explanation: R. K. Shanmukham Chetty presented the first Budget on November 26, 1947, soon after independence.
6. What is a 'Vote on Account'?
a) A summary of the budget
b) A temporary arrangement for expenditure
c) A report on government debt
d) None of the above
Answer: b) A temporary arrangement for expenditure
Explanation: A Vote on Account allows the government to withdraw funds for essential expenses until the full budget is passed.
7. Which constitutional article relates to the Union Budget?
a) Article 110
b) Article 320
c) Article 124
d) Article 112
Answer: d) Article 112
Explanation: Article 112 of the Constitution mandates the presentation of the Union Budget, referred to as the Annual Financial Statement.
READ| GK Quiz on Indian Constitution
8. What does GDP stand for?
a) Gross Domestic Product
b) Gross Development Plan
c) General Data Policy
d) Government Development Project
Answer: a) Gross Domestic Product
Explanation: GDP is the total monetary value of all goods and services produced in a country during a specific period.
9. Which sector gets the highest allocation in most Union Budgets?
a) Education
b) Defence
c) Infrastructure
d) Agriculture
Answer: b) Defence
Explanation: Defence is often one of the top priorities, receiving a significant share of the Union Budget for national security.
10. What is a direct tax?
a) Tax levied on income and profits
b) Tax on goods and services
c) Tax on imports and exports
d) None of the above
Answer: a) Tax levied on income and profits
Explanation: Direct taxes, like income tax, are paid directly by individuals or organizations to the government.
READ| India's Economic Guardians: Quiz on Finance Ministers and Their Achievements
Comments
All Comments (0)
Join the conversation