This MCQ set on the Union Budget 2024-2025 is designed for competitive exams like UPSC, UPPSC and others, focusing on critical aspects of India's financial blueprint. It includes questions on tax reforms, government spending, and fiscal policies, testing your knowledge of budget allocations, subsidies, and schemes impacting sectors like agriculture, infrastructure, and social welfare. With an emphasis on the budget's implications for economic growth, fiscal deficit management, and public welfare initiatives, these questions help you prepare for exams by covering key points that are essential for understanding the government's financial strategy for 2024-2025.
Q1. Who presented the first Union Budget in
independent India?
(a) (a) Jawaharlal
Nehru
(b)
R.K.
Shanmukham Chetty
(c)
C.D.
Deshmukh
(d)
Morarji
Desai
Answer: (b) R.K. Shanmukham Chetty
Explanation: The first Union Budget of independent India was presented
by R.K. Shanmukham Chetty in 1947.
Q2. The
Union Budget of India is presented on which date each year?
(a) (a) 5th August
(b)
26th
January
(c)
1st
February
(d)
31st March
Answer: (c) 1st February
Explanation: The Union Budget of India is traditionally presented on the
1st of February each year by the Finance Minister in the Lok Sabha.
Q3. Under
which article of the Indian Constitution is the Annual Financial Statement
(Union Budget) mentioned?
(a) (a) Article 110
(b)
Article 111
(c)
Article 112
(d)
Article 113
Answer: (c) Article 112
Explanation: The Union Budget, known as the Annual Financial Statement,
is mentioned under Article 112 of the Indian Constitution.
Q4. Which
body is responsible for preparing the Union Budget document in India?
(a) (a) Reserve
Bank of India
(b)
Ministry of
Commerce
(c)
Ministry of
Finance
(d)
Planning
Commission
Answer: (c) Ministry of Finance
Explanation: The Department of Economic Affairs under the Ministry of
Finance is the nodal body responsible for preparing the Union Budget document.
Q5. What
does Part B of the Union Budget primarily deal with?
(a) (a) Government
schemes and priorities
(b)
Revenue
estimates
(c)
Capital
expenditure
(d)
Taxation
proposals
Answer: (d) Taxation proposals
Explanation: Part B of the Union Budget involves the Finance Bill, which
contains proposals for taxation, such as income tax revisions.
Q6. Which of the following statements is true about
the classification of the Union Budget?
(a) (a) It is
classified into Plan Budget and Non-Plan Budget.
(b)
It is
classified into Revenue Budget and Capital Budget.
(c)
It is
classified into Internal Budget and External Budget.
(d)
It is
classified into Direct Budget and Indirect Budget.
Answer: (b) It is classified into Revenue Budget and
Capital Budget.
Explanation: The Union Budget is classified into the Revenue Budget,
which includes the government's expected income, and the Capital Budget, which
deals with government assets and liabilities.
Q7. Which
article of the Constitution gives the Speaker the authority to determine
whether a Bill is a Money Bill?
(a) (a) Article 108
(b)
Article 110
(c)
Article 111
(d)
Article 113
Answer: (b)Article 110
Explanation: According to Article 110 of the Indian Constitution, the
Speaker of the Lok Sabha has the final authority to determine whether a Bill is
a Money Bill.
Q8. What is
the primary focus of the Capital Budget?
(a) (a) Income from
taxes
(b)
Government
expenditure on welfare schemes
(c)
Government's
significant expenses like infrastructure development
(d)
Subsidies
and grants
Answer: (c) Government's significant expenses like
infrastructure development
Explanation: The Capital Budget addresses government assets and
liabilities and focuses on significant expenses, such as infrastructure
development.
Q9. Which of the following documents is NOT a key
document associated with the Union Budget?
(a) (a) Annual
Financial Statement
(b)
Demands for
Grants
(c)
Finance
Bill
(d)
Monetary
Policy Report
Answer: (d) Monetary Policy Report
Explanation: The Monetary Policy Report is not associated with the Union
Budget. Key documents include the Annual Financial Statement, Demands for
Grants, and the Finance Bill.
Q10. What
is the full form of FRBM Act, which mandates certain fiscal policy statements
to be presented with the Budget?
(a) (a) Fiscal
Regulation and Budget Management Act
(b)
Fiscal
Responsibility and Budget Management Act
(c)
Financial
Restructuring and Budgetary Measures Act
(d)
Financial
Reform and Budget Management Act
Answer: (b) Fiscal Responsibility and Budget
Management Act
Explanation: The FRBM Act stands for Fiscal Responsibility and Budget
Management Act, 2003, which mandates the government to present certain fiscal
policy statements with the Budget.
Q11.
According to the Union Budget 2024-25, what is the current rate of core
inflation in India?
(a) (a) 2.5%
(b)
3.1%
(c)
4.0%
(d)
5.6%
Answer: (b) 3.1%
Explanation: The Union Budget 2024-25 presented by the Finance Minister
mentioned that the current core inflation (non-food, non-fuel) in India is 3.1%.
Q12. Which
of the following groups is NOT one of the four major castes focused on in the
Union Budget 2024-25?
(a) (a) Garib
(Poor)
(b)
Mahilayen
(Women)
(c)
Yuva
(Youth)
(d)
Shikshak
(Teachers)
Answer: (d) Shikshak (Teachers)
Explanation: The four major castes focused on in the Union Budget
2024-25 are Garib (Poor), Mahilayen (Women), Yuva (Youth), and Annadata
(Farmer). Shikshak (Teachers) is not mentioned as a focus group.
Q13. What
is the central outlay announced by the Finance Minister for employment,
skilling, and other opportunities for 4.1 crore youth over a 5-year period?
(a) (a) ₹1 lakh crore
(b)
₹1.48 lakh
crore
(c)
₹2 lakh
crore
(d)
₹2.5 lakh
crore
Answer: (c) ₹2 lakh crore
Explanation: The Finance Minister announced a central outlay of ₹2 lakh
crore for employment, skilling, and other opportunities for 4.1 crore youth
over a 5-year period.
Q14. What
is the budget allocation for education, employment, and skilling for the year
2024-25?
(a) (a) ₹1 lakh crore
(b)
₹1.25 lakh
crore
(c)
₹1.48 lakh
crore
(d)
₹2 lakh
crore
Answer: (c) ₹1.48 lakh crore
Explanation: The Union Budget 2024-25 allocates ₹1.48 lakh crore for
education, employment, and skilling for the year.
Q15. What
is the target inflation rate mentioned by the Finance Minister in the Union
Budget 2024-25?
(a) (a) 2%
(b)
3%
(c)
5%
(d)
4%
Answer: (d) 4%
Explanation: The Finance Minister mentioned that India's inflation is
low, stable, and moving towards the 4% target in the Union Budget 2024-25.
Q16. Which of the following is NOT one of the 9 priorities outlined in the Union Budget 2024-25 for achieving ‘Viksit Bharat’?
(a) (a) Energy
Security
(b)
Rural
Development
(c)
Innovation,
Research & Development
(d)
Urban
Development
Answer: (b) Rural Development
Explanation: The 9 priorities for ‘Viksit Bharat’ mentioned in the Union
Budget 2024-25 include Energy Security, Innovation, Research & Development,
and Urban Development. Rural Development is not explicitly listed as one of the
priorities.
Q17. Which
of the following sectors is a key focus area for generating employment
opportunities according to the Union Budget 2024-25?
(a) (a) Agriculture
(b)
Real Estate
(c)
Manufacturing
& Services
(d)
Entertainment
Industry
Answer: (c) Manufacturing & Services
Explanation: The Union Budget 2024-25 identifies Manufacturing & Services
as one of the 9 priorities, focusing on generating employment opportunities and
contributing to the pursuit of ‘Viksit Bharat’.
Q18. Which of the following is the correct
sequence of procedures followed before presenting the Union Budget in India?
(a)
Halwa Ceremony, Consultation with
stakeholders, Collection of estimates from departments, Economic Survey
presentation, Final approval from the Prime Minister.
(b)
Collection of estimates from departments,
Consultation with stakeholders, Final approval from the Prime Minister, Halwa
Ceremony, Economic Survey presentation.
(c)
Economic Survey presentation, Halwa Ceremony,
Consultation with stakeholders, Collection of estimates from departments, Final
approval from the Prime Minister.
(d)
Collection of estimates from departments,
Final approval from the Prime Minister, Consultation with stakeholders, Halwa
Ceremony, Economic Survey presentation.
Answer: (b)
Explanation: The
correct sequence begins with the Finance Ministry issuing circulars for budget
estimates from departments, followed by consultations with stakeholders, and
seeking final approval from the Prime Minister. The Halwa Ceremony
traditionally takes place about 10 days before the budget, and the Economic
Survey is presented a day before the budget is announced.
Q19. What is the significance of the Economic
Survey in the context of the Union Budget?
(a) It contains detailed recommendations from stakeholders across various
sectors.
(b) It includes the final estimates of revenue and expenditure for the
coming fiscal year.
(c) It is a comprehensive analysis of factors affecting the Indian economy,
presented a day before the Union Budget.
(d) It is a ritual performed before the budget to ensure its success.
Answer: (c)
Explanation: The
Economic Survey is a detailed document prepared under the leadership of the
Chief Economic Advisor and presented a day before the Union Budget. It provides
an in-depth analysis of various factors impacting the Indian economy, such as
GDP growth, inflation, banking, and government policies.
Q20. What is the target fiscal deficit as a
percentage of GDP for FY2024-25, according to the Union Budget 2024?
(a) 4.5%
(b) 5.1%
(c) 6.8%
(d) 8.2%
Answer: (b)
Explanation: The fiscal
deficit for FY2024-25 is estimated to be 5.1% of the total GDP. The government
aims to reduce this to below 4.5% by 2030, indicating a focus on fiscal
consolidation over the coming years.
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