1. Consider the following statements:
1. Balanced Budget: Revenues = Expenditure
2. Surplus Budget: Revenues > Expenditure
3. Deficit Budget: Revenues < Expenditure

A. Only one statement is true
B. All statements are true
C. No statement is true
D. Only two statements are true

2. What are the negative consequences of a budgetary deficit:
1. Fall of Interest rates
2. Raises the rate of inflation
3. Government’s burden of increasing interest payments grows

A. Only one statement is true
B. All statements are true
C. No statement is true
D. Only two statements are true

3. Which of the following statements is true regarding fiscal consolidation?

A. It primarily focuses on increasing public debt.
B. It involves reducing the size of the government workforce.
C. It aims to improve the financial health of the government.
D. It is unrelated to economic growth

4. Which of the following statements are true?
1. The Eleventh Finance Commission (EFC) 2000 created a Fiscal Reform Facility.
2. The Twelfth Finance Commission (TWFC) laid down a debt write-off scheme for better fiscal governance

A. 1 only
B. 2 only
C. Both 1&2
D. Neither 1nor2

5. Consider the following statements:
1. Fiscal Responsibility and Budget Management (FRBM) Act mandates Central fiscal deficit reduction to 3% of GDP
2. Fiscal Responsibility and Budget Management (FRBM) Act mandates Revenue deficit reduction by 0.5% or more of GDP annually
3. Fiscal Responsibility and Budget Management (FRBM) Act mandates States’ fiscal deficit reduction to 3% of GSDP

A. Only one statement is true
B. All statements are true
C. No statement is true
D. Only two statements are true

6. Revenue expenses include_____:
(1) Wages and salaries for employees
(2) Research and development
(3) Rentals and utilities
(4) Traveling for work
Select the correct answer using the code given below.

A. 1 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2, 3 and 4

7. What is one of the primary objectives of the budget?

A. Reallocation of resources
B. Increasing public debt
C. Reducing the government workforce
D. Limiting foreign investments

8. Which of the following statements are true?
1. Revenue Budget is Statement of government’s anticipated revenue receipts and expenditures
2. Revenue Budget does not cover recurring, non-redeemable revenue items

A. 1 only
B. 2 only
C. Both 1&2
D. Neither 1nor2

9. Which of the following is/are included in the Indian government’s capital budget?
1. Payments on the acquisition of assets such as roads, buildings, and machinery.
2. Loans from other country’s governments.
3. State governments and union territories receive loans and advances.

A. Only (1)
B. Only (2) and (3)
C. Only (1) and (3)
D. All of the three

10. Which of the following is NOT included in capital expenditure?

A. Purchase of land
B. Construction of buildings
C. Salaries of employees
D. Acquisition of machinery