Tag: public expenditure

Questions Related to public expenditure

If the budget shows the government expenditure to be more than its revenue, it is a ___________ budget.

  1. surplus

  2. deficit

  3. balanced

  4. imbalanced


Correct Option: B
Explanation:

A budget deficit is an indicator of financial health in which expenditures exceed revenue. The term budget deficit is most commonly used to refer to government spending rather than business or individual spending, but can be applied to all of these entities.

The budget of the central government is prepared by the ______.

  1. president

  2. prime Minister

  3. finance Minister

  4. speaker


Correct Option: C
Explanation:

The budget of the central government is prepared by the Finance Minister.

With the exception of development activities, expenditure incurred on administration, defence, interest payment, etc., is called ____________ expenditure.

  1. non-plan

  2. plan

  3. revenue

  4. general


Correct Option: A
Explanation:

With the exception of development activities, expenditure incurred on administration, defence, interest payment, etc., is called non-plan expenditure.

Causes of rise in public debt is ___________________.

  1. rise in defence expenditure

  2. fall in development expenditure

  3. fall in debt servicing

  4. all of the above


Correct Option: A

Expenditure made by the government on the purchase of goods and services on current services of factors of production is called _________________.

  1. government direct expenditure

  2. private direct expenditure

  3. government expenditure

  4. total expenditure


Correct Option: A

During the period of boom there is need of curbing _____________________.

  1. excess demand

  2. excess supply

  3. investment

  4. savings


Correct Option: A

During depression the government is expected to increase ____________________.

  1. money supply

  2. expenditure

  3. revenue

  4. Both B&C


Correct Option: B

Developmental expenditure is expenditure incurred in promoting economic and social development of the country.

  1. True

  2. False


Correct Option: A

Public expenditure refers to expenditures made by _______________. 

  1. private firms

  2. public authorities

  3. NGOs

  4. international agencies


Correct Option: B

Public expenditure if spent properly, exerts an important influence on the entire economy.

  1. True

  2. False


Correct Option: A