Announcement
Fiscal Poliocy
Which organization is responsible for releasing the Periodic Labour Force Survey (PLFS) in India?
- A National Statistical Office (NSO)
- B RBI
- C Ministry of Labour and Employment
- D NITI Aayog
PLFS is released by the National Statistical Office (NSO).
In the context of employment, the ‘Gig Economy’ is best described as:
- A An economy dominated by traditional manufacturing jobs
- B A labor market characterized by short-term contracts or freelance work
- C A system where the government provides a universal basic income
- D An economy strictly based on agricultural barter trade
The gig economy relies on task-based or freelance work rather than permanent jobs.
In the context of the Union Budget, how is the ‘Primary Deficit’ calculated?
- A Total Expenditure โ Total Receipts
- B Fiscal Deficit โ Interest Payments
- C Revenue Deficit โ Grants for Capital Creation
- D Fiscal Deficit + Borrowings
Primary Deficit shows the borrowing requirement excluding interest on past debt.
What does the term ‘Fiscal Drag’ refer to?
- A A situation where government spending exceeds its revenue
- B Inflation pushing income into higher tax brackets, increasing tax revenue without changing tax laws
- C The negative impact of high public debt on private investment
- D The time lag between budget announcement and implementation
Fiscal drag happens as inflation raises nominal incomes, pushing taxpayers into higher tax brackets.
Under the Indian Constitution, the GST Council is classified as which type of body?
- A Statutory Body
- B Executive Body
- C Constitutional Body
- D Judicial Body
Created via the 101st Constitutional Amendment, making it a constitutional body.
Every decision of the GST Council is taken by a majority of not less than:
- A Two-thirds of the weighted votes of members present and voting
- B Three-fourths of the weighted votes of members present and voting
- C Simple majority of all members
- D Unanimous consent
GST Council decisions require a 75% weighted majority.
Which of the following is/are examples of ‘Direct Taxes’ in India?
- Corporate Tax
- Customs Duty
- Wealth Tax
- Securities Transaction Tax (STT)
Select the correct answer using the code given below:
- A 1 and 2 only
- B 1, 3, and 4 only
- C 3 and 4 only
- D 1, 2, 3, and 4
Customs duty is an indirect tax; Corporate tax, Wealth tax, and STT are direct taxes.
‘Capital Receipts’ in the government budget include which of the following?
- Market Borrowings
- Disinvestment proceeds
- Recovery of loans
- Tax revenue
Select the correct answer using the code given below:
- A 1, 2, and 3 only
- B 2 and 4 only
- C 1 and 3 only
- D 1, 2, 3, and 4
Tax revenue is a Revenue Receipt. Borrowings, disinvestment, and loan recoveries are Capital Receipts.
What is the main purpose of the ‘Fiscal Responsibility and Budget Management (FRBM) Act’?
- A To mandate a 0% corporate tax rate
- B To institutionalize financial discipline and reduce the fiscal deficit
- C To allow the government unlimited borrowing from the RBI
- D To eliminate the distinction between Plan and Non-Plan expenditure
FRBM Act aims for long-term fiscal stability by setting targets to reduce deficits.
Which of the following is an ‘Indirect Tax’?
- A Income Tax
- B GST (Goods and Services Tax)
- C Corporate Tax
- D Capital Gains Tax
GST is the primary indirect tax in India, replacing several others.
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