The Daily Current Affairs Quiz questions are based on various national and regional newspapers including government news sources.
The questions are framed on happenings around you to enhance your competitiveness for news based concepts and facts
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Question 1 of 5
1. Question
Consider the following statements regarding the Union Budget:
1. The Union Budget is presented under Article 110 of the Constitution of India.
2. The Budget documents include the Finance Bill, which contains taxation proposals for the upcoming financial year.
3. The Union Budget must be passed by both Houses of Parliament before it can be implemented.
Which of the statements given above is/are correct?
Correct
Answer: (b) 2 only
Explanation:
Statement 1 is incorrect: The Union Budget is presented under Article 112, not Article 110 (which deals with Money Bills).
Statement 2 is correct: The Finance Bill is an integral part of the Budget and includes taxation proposals.
Statement 3 is incorrect: The Budget is a Money Bill, and as per Article 110, it needs to be approved only by the Lok Sabha, while the Rajya Sabha can only suggest amendments.
Incorrect
Answer: (b) 2 only
Explanation:
Statement 1 is incorrect: The Union Budget is presented under Article 112, not Article 110 (which deals with Money Bills).
Statement 2 is correct: The Finance Bill is an integral part of the Budget and includes taxation proposals.
Statement 3 is incorrect: The Budget is a Money Bill, and as per Article 110, it needs to be approved only by the Lok Sabha, while the Rajya Sabha can only suggest amendments.
Question 2 of 5
2. Question
With reference to the Economic Survey, consider the following statements:
1. The Economic Survey is prepared and released by the NITI Aayog.
2. It provides an overview of the economic performance of the previous financial year.
3. The Economic Survey is mandated by the Constitution of India and must be presented before the Union Budget.
Which of the statements given above is/are correct?
Correct
Answer: (b) 2 only
Explanation:
Statement 1 is incorrect: The Economic Survey is prepared by the Department of Economic Affairs (DEA) under the Ministry of Finance, not by NITI Aayog.
Statement 2 is correct: The Survey provides an analysis of economic trends over the past year and policy recommendations.
Statement 3 is incorrect: The Economic Survey is not a constitutional mandate; it is a convention followed since 1950 but not legally required.
Incorrect
Answer: (b) 2 only
Explanation:
Statement 1 is incorrect: The Economic Survey is prepared by the Department of Economic Affairs (DEA) under the Ministry of Finance, not by NITI Aayog.
Statement 2 is correct: The Survey provides an analysis of economic trends over the past year and policy recommendations.
Statement 3 is incorrect: The Economic Survey is not a constitutional mandate; it is a convention followed since 1950 but not legally required.
Question 3 of 5
3. Question
Consider the following statements regarding the Fiscal Responsibility and Budget Management (FRBM) Act:
1. The FRBM Act mandates the government to eliminate the fiscal deficit to 0% of GDP by a specified target year.
2. The Act allows deviations from fiscal deficit targets under exceptional circumstances such as national security or economic crisis.
3. The government is required to lay out a Medium-Term Fiscal Policy Statement in Parliament as part of the FRBM framework.
Which of the statements given above is/are correct?
Correct
Answer: (b) 2 and 3 only
Explanation:
Statement 1 is incorrect: The FRBM Act does not mandate a 0% fiscal deficit; instead, it sets targets to gradually reduce it to sustainable levels. The latest targets have been revised periodically.
Statement 2 is correct: The Act allows escape clauses for deviations from fiscal targets under certain conditions like war, calamities, or structural economic slowdowns.
Statement 3 is correct: The government must present a Medium-Term Fiscal Policy Statement along with the Budget to provide transparency on fiscal planning.
Incorrect
Answer: (b) 2 and 3 only
Explanation:
Statement 1 is incorrect: The FRBM Act does not mandate a 0% fiscal deficit; instead, it sets targets to gradually reduce it to sustainable levels. The latest targets have been revised periodically.
Statement 2 is correct: The Act allows escape clauses for deviations from fiscal targets under certain conditions like war, calamities, or structural economic slowdowns.
Statement 3 is correct: The government must present a Medium-Term Fiscal Policy Statement along with the Budget to provide transparency on fiscal planning.
Question 4 of 5
4. Question
Consider the following statements regarding taxation measures in the Union Budget:
1. Direct taxes are levied on income and profits, whereas indirect taxes are levied on consumption and transactions.
2. A change in customs duty rates requires an amendment in the Finance Bill and cannot be changed by an executive notification.
3. The Goods and Services Tax (GST) rates are decided exclusively by the Union Government and are part of the Budget proposals.
Which of the statements given above is/are correct?
Correct
Answer: (a) 1 only
Explanation:
Statement 1 is correct: Direct taxes (Income Tax, Corporate Tax) are levied on income, whereas indirect taxes (GST, Excise Duty) are levied on consumption.
Statement 2 is incorrect: Customs duty changes can be made by executive notification under the Customs Act, 1962 without needing Finance Bill amendments.
Statement 3 is incorrect: GST rates are decided by the GST Council (not exclusively by the Union Government), and they do not form part of the Budget since GST is governed separately under the GST regime.
Incorrect
Answer: (a) 1 only
Explanation:
Statement 1 is correct: Direct taxes (Income Tax, Corporate Tax) are levied on income, whereas indirect taxes (GST, Excise Duty) are levied on consumption.
Statement 2 is incorrect: Customs duty changes can be made by executive notification under the Customs Act, 1962 without needing Finance Bill amendments.
Statement 3 is incorrect: GST rates are decided by the GST Council (not exclusively by the Union Government), and they do not form part of the Budget since GST is governed separately under the GST regime.
Question 5 of 5
5. Question
Consider the following statements about capital and revenue expenditure in the Union Budget:
1. Capital expenditure results in asset creation and has a long-term impact on the economy.
2. Revenue expenditure is primarily related to day-to-day expenses and includes salaries, subsidies, and interest payments.
3. Both capital and revenue expenditures are considered part of the government’s fiscal deficit calculation.
Which of the statements given above is/are correct?
Correct
Answer: (d) 1, 2, and 3
Explanation:
Statement 1 is correct: Capital expenditure is spent on infrastructure, roads, railways, defense equipment, and other projects that create long-term assets.
Statement 2 is correct: Revenue expenditure covers salaries, pensions, interest payments, subsidies, and other recurring expenses.
Statement 3 is correct: Both capital and revenue expenditure contribute to the fiscal deficit since it is the excess of total government expenditure over total receipts (excluding borrowings).
Incorrect
Answer: (d) 1, 2, and 3
Explanation:
Statement 1 is correct: Capital expenditure is spent on infrastructure, roads, railways, defense equipment, and other projects that create long-term assets.
Statement 2 is correct: Revenue expenditure covers salaries, pensions, interest payments, subsidies, and other recurring expenses.
Statement 3 is correct: Both capital and revenue expenditure contribute to the fiscal deficit since it is the excess of total government expenditure over total receipts (excluding borrowings).
