MCQ on Union Budget 2024-2025

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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