Government Budget and Expenditure Quiz

Challenge yourself with questions on government budget components, revenue sources, fiscal objectives, and more. Test now!

Practice Learn Test

Which of the following is not a component of government budget?

Revenue Budget

Capital Budget

Fiscal Budget

None of the above

What does the term 'Revenue Budget' primarily include?

Expenditure on assets

Expenditure on current goods and services

Expenditure on welfare schemes

Expenditure on infrastructure development

Which of the following is an example of non-tax revenue for the government?

Income Tax

Goods and Services Tax (GST)

Dividends from state-owned enterprises

Corporate Tax

Which of the following is a characteristic of a 'Balanced Budget'?

Government revenue exceeds government expenditure

Government expenditure exceeds government revenue

Government revenue is equal to government expenditure

Government borrowing is zero

Which of the following is a component of 'Capital Expenditure'?

Payment of salaries to government employees

Purchase of goods for day-to-day operations

Construction of roads and bridges

Subsidies provided to low-income families

What is the main objective of a 'Fiscal Budget'?

To reduce government expenditure

To increase government revenue

To achieve economic stability

To control inflation

Which of the following is not a source of government revenue?

Income Tax

Corporate Tax

Subsidies

Customs Duty

Which of the following is an example of capital expenditure for the government?

Payment of salaries to government employees

Construction of a new hospital building

Subsidies provided to farmers

Maintenance of public parks

What does the term 'Deficit Financing' refer to in the context of government budgeting?

A situation where government revenue exceeds government expenditure

Borrowing by the government to finance its expenditure when revenue falls short

A situation where government expenditure exceeds government revenue

A strategy to reduce government debt

#10

What is the primary purpose of a 'Supplementary Budget'?

To allocate funds for unexpected expenditures not covered in the original budget

To reduce the overall government expenditure

To increase tax rates for additional revenue generation

To decrease government borrowing

#11

What is the significance of a 'Surplus Budget'?

It indicates a shortfall in government revenue

It indicates a deficit in government expenditure

It signifies a balance between government revenue and expenditure

It indicates a budget where revenue exceeds expenditure

#12

Which of the following statements about 'Progressive Taxation' is true?

It imposes the same tax rate on all individuals regardless of income level

It imposes a higher tax rate on individuals with higher incomes

It imposes a higher tax rate on individuals with lower incomes

It imposes no tax on individuals

#13

What is the purpose of 'Gender Budgeting' in government expenditure?

To allocate resources based on gender-specific needs and priorities

To exclude certain genders from budgetary considerations

To prioritize budget allocation solely based on economic criteria

To increase government revenue from gender-specific taxes

#14

What is the purpose of 'Performance Budgeting'?

To allocate funds based on historical spending patterns

To allocate funds based on the performance and results achieved by government programs

To allocate funds based on political considerations

To allocate funds based on population size

#15

What is the primary aim of 'Zero-Based Budgeting'?

To maintain a balanced budget at all times

To allocate funds based on historical spending

To allocate funds based on the projected revenue

To justify every expense from scratch regardless of past budgets