Unique Academic Board Solutions for Chapter: Fiscal Policy, Exercise 2: Previously Asked Questions

With reference to the Fourteenth Finance Commission:

1. It has increased the share of States in the central divisible pool from 32 percent to 42 percent.

2. It has made recommendations concerning sector specific grants.

Select the correct answer using the code given below:

Which of the following is/are included in the capital budget of the Government of India?
$1.$ 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:

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?
$1.$ Reducing revenue expenditure
$2.$ Introducing new welfare schemes
$3.$ Rationalizing subsidies
$4.$ Reducing import duty
Select the correct answer using the code given below:

With reference to 'Financial Stability and Development Council' consider the following statements:

1. It is an organ of NITI Aayog.

2. It is headed by the Union Finance Minister.

3. It monitors macro prudential supervision of the economy.

Which of the statements given above is/are correct?

What is/are the purpose of the Government's 'Sovereign Gold Bond Scheme' and 'Gold Monetization Scheme'?
$1.$ To bring the idle gold lying with Indian households into the economy.
$2.$ To promote FDI in the gold and jewellery sector.
$3.$ To reduce India's dependence on gold imports.

Select the correct answer using the code given below:

The term 'Base Erosion and Profit Shifting' is sometimes seen in the news in the context of:

Consider the following statements:

1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.

2. The Central Government has domestic liabilities of 21 % of GDP as compared to that of 49% of GDP of the State Governments.

3. As per the Constitution of India, it is mandatory for a State to take the Central Government's consent for raising any loan if the former owes any outstanding liabilities to the latter.

Which of the statements given above is/are correct?

Consider the following items:
$1.$ 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)?