Financial Resources of Panchayati Raj Institutions

Description: Financial Resources of Panchayati Raj Institutions
Number of Questions: 15
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Tags: panchayati raj financial resources rural development
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Which of the following is not a source of revenue for Panchayati Raj Institutions?

  1. Taxes

  2. Fees

  3. Grants

  4. Donations


Correct Option: D
Explanation:

Donations are not a source of revenue for Panchayati Raj Institutions. Taxes, fees, and grants are the primary sources of revenue.

What is the primary source of revenue for Panchayati Raj Institutions in India?

  1. Taxes

  2. Fees

  3. Grants

  4. User charges


Correct Option: A
Explanation:

Taxes are the primary source of revenue for Panchayati Raj Institutions in India. Taxes are levied on various items such as property, profession, and trade.

Which of the following is not a type of tax that can be levied by Panchayati Raj Institutions?

  1. Property tax

  2. Professional tax

  3. Sales tax

  4. Vehicle tax


Correct Option: C
Explanation:

Sales tax is not a type of tax that can be levied by Panchayati Raj Institutions. Property tax, professional tax, and vehicle tax are the types of taxes that can be levied by Panchayati Raj Institutions.

What is the purpose of levying fees by Panchayati Raj Institutions?

  1. To generate revenue

  2. To regulate activities

  3. To provide services

  4. All of the above


Correct Option: D
Explanation:

Panchayati Raj Institutions levy fees for a variety of purposes, including generating revenue, regulating activities, and providing services.

Which of the following is not a type of fee that can be levied by Panchayati Raj Institutions?

  1. License fee

  2. Registration fee

  3. Service fee

  4. Toll tax


Correct Option: D
Explanation:

Toll tax is not a type of fee that can be levied by Panchayati Raj Institutions. License fee, registration fee, and service fee are the types of fees that can be levied by Panchayati Raj Institutions.

What is the primary source of grants for Panchayati Raj Institutions?

  1. Central government

  2. State government

  3. International agencies

  4. All of the above


Correct Option: D
Explanation:

Panchayati Raj Institutions receive grants from the central government, state government, and international agencies.

Which of the following is not a type of grant that can be received by Panchayati Raj Institutions?

  1. Matching grant

  2. Conditional grant

  3. Unconditional grant

  4. Project grant


Correct Option: D
Explanation:

Project grant is not a type of grant that can be received by Panchayati Raj Institutions. Matching grant, conditional grant, and unconditional grant are the types of grants that can be received by Panchayati Raj Institutions.

What is the purpose of providing grants to Panchayati Raj Institutions?

  1. To supplement their financial resources

  2. To promote specific development programs

  3. To encourage local participation in development

  4. All of the above


Correct Option: D
Explanation:

Grants are provided to Panchayati Raj Institutions to supplement their financial resources, promote specific development programs, and encourage local participation in development.

Which of the following is not a financial resource that can be generated by Panchayati Raj Institutions through their own efforts?

  1. Taxes

  2. Fees

  3. User charges

  4. Borrowings


Correct Option: D
Explanation:

Borrowings are not a financial resource that can be generated by Panchayati Raj Institutions through their own efforts. Taxes, fees, and user charges are the financial resources that can be generated by Panchayati Raj Institutions through their own efforts.

What is the primary purpose of generating financial resources by Panchayati Raj Institutions?

  1. To finance their development activities

  2. To provide basic services to the community

  3. To create employment opportunities

  4. All of the above


Correct Option: D
Explanation:

Panchayati Raj Institutions generate financial resources to finance their development activities, provide basic services to the community, and create employment opportunities.

Which of the following is not a challenge faced by Panchayati Raj Institutions in generating financial resources?

  1. Limited tax base

  2. Lack of technical expertise

  3. Political interference

  4. All of the above


Correct Option: C
Explanation:

Political interference is not a challenge faced by Panchayati Raj Institutions in generating financial resources. Limited tax base and lack of technical expertise are the challenges faced by Panchayati Raj Institutions in generating financial resources.

What is the role of the central government in strengthening the financial resources of Panchayati Raj Institutions?

  1. Providing grants

  2. Enacting legislation

  3. Capacity building

  4. All of the above


Correct Option: D
Explanation:

The central government plays a crucial role in strengthening the financial resources of Panchayati Raj Institutions by providing grants, enacting legislation, and providing capacity building support.

Which of the following is not a measure that can be taken to strengthen the financial resources of Panchayati Raj Institutions?

  1. Expanding the tax base

  2. Improving tax administration

  3. Encouraging local participation in development

  4. Reducing government expenditure


Correct Option: D
Explanation:

Reducing government expenditure is not a measure that can be taken to strengthen the financial resources of Panchayati Raj Institutions. Expanding the tax base, improving tax administration, and encouraging local participation in development are the measures that can be taken to strengthen the financial resources of Panchayati Raj Institutions.

What is the significance of strengthening the financial resources of Panchayati Raj Institutions?

  1. It enables them to finance their development activities

  2. It empowers them to provide basic services to the community

  3. It promotes local participation in development

  4. All of the above


Correct Option: D
Explanation:

Strengthening the financial resources of Panchayati Raj Institutions enables them to finance their development activities, empowers them to provide basic services to the community, and promotes local participation in development.

Which of the following is not a benefit of strengthening the financial resources of Panchayati Raj Institutions?

  1. Improved service delivery

  2. Increased accountability

  3. Enhanced transparency

  4. Reduced poverty


Correct Option: D
Explanation:

Reduced poverty is not a benefit of strengthening the financial resources of Panchayati Raj Institutions. Improved service delivery, increased accountability, and enhanced transparency are the benefits of strengthening the financial resources of Panchayati Raj Institutions.

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