Subject: “Budget, Fiscal Policy”

There has been a persistent deficit budget year after year. Which action/actions of the following
can be taken by the Government to reduce the deficit?
1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalizing subsidies
4. Reducing import duty
Select the correct answer using the code given below.

Which of the following is/are included in the capital budget of the Government of India?
1. Expenditure on acquisition of assets like roads, buildings, machinery, etc.
2. Loans received from foreign governments
3. Loans and advances granted to the States and Union Territories
Select the correct answer using the code given below.

With reference to the ‘Prohibition of Benami Property Transactions Act, 1988
(PBPT Act)’, consider the following statements:
1. A property transaction is not treated as a benami transaction if the owner of the property
is not aware of the transaction.
2. Properties held benami are liable for confiscation by the Government.
3. The Act provides for three authorities for investigations but does not provide for any
appellate mechanism.
Which of the statements given above is/are correct?

If a commodity is provided free to the public by the Government, then

In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis?
1. The foreign currency earnings of India’s IT sector
2. Increasing the government expenditure
3. Remittances from Indians abroad
Select the correct answer using the code given below.

If another global financial crisis happens in the near future, which of the following
actions/policies are most likely to give some immunity to India?
(1) Not depending on short-term foreign borrowings
(2) Opening up to more foreign banks
(3) Maintaining full capital account convertibility
Select the correct answer using the code given below:

Along with the Budget, the Finance Minister also places other documents before the Parliament which include ‘The Macro Economic Framework Statement’. The aforesaiddocument is presented because this is mandated by

With reference to the Indian economy after the 1991 economic liberalization, consider
the following statements:
1. Worker productivity (Rupee per worker at 2004-05 prices) increased in urban areas
while it decreased in rural areas.
2. The percentage share of rural areas in the workforce steadily increased.
3. In rural areas, the growth in non-farm economy increased.
4. The growth rate in rural employment decreased.
Which of the statements given above is/are correct?

Which one of the following effects of the creation of black money in India has been the main cause of worry to the Government of India?

Which among the following steps is most likely to be taken at the time of an economic recession?