Definition of Union Budget

In simple words, the Union Budget, also known as the Annual Financial Statement according to Article 112 of the Constitution of India, is an estimate of income and expenditure for a definite duration. Since, the Union Budget of India always takes place on 1st February, it also provides budgetary estimates for the next fiscal year.

In economics, a budget is a systematic list of revenue and expenditure or we can say it’s a plan for income and expenditure.

The word ‘budget’ has been borrowed from the English word “Bowgette” which traces its origin to the French word “Bougette”.  Word “Bougette” has arrived from the word, ‘Bouge’ which means a leather bag.

Why the government works out a budget every year?

The Government performs two important functions by making a budget every year-

1. The Government of India estimates the expected expenditures for developmental works in different sectors of the economy e.g. Industry, Manufacturing, Education, Health, Transport, etc.

2. To meet the expenditures for the coming financial year, the Government tries to work out the sources of revenue. ( i.e. by imposing new taxes or increasing or decreasing the previous rates of taxes, or removing or imposing subsidy on any commodity.

 

Types of Budget

1. Traditional or General Budget: The initial structure of the present-day general budget is known as the Traditional Budget. The main aim of the General Budget is to set up financial control over the Executive and the Legislature.

This Budget contains the details of the expenditure in different sectors done by the Government of India. However, the result of this expenditure is not explained in this Budget. Thus, the main idea behind the traditional budget, i.e., to solve the problems of independent India and to achieve the developmental targets was not fulfilled.

2. Performance Budget: When the outcome of any activity is taken as the base of any budget, such a budget is known as ‘Performance Budget’. For the first time in the world, the performance budget was made in the USA. An Administrative Reforms Commission was set up in 1949 in America under Sir Hooper. This commission recommended making a ‘Performance Budget’ in the USA.

In the Performance Budget, it is the compulsion of the government to tell that ‘what is done’, ‘how much is done’ by it for the betterment of the people. In India, the Performance Budget is also known as the ‘Outcome Budget’.

 

 3. Zero Based Budget:  There are two primary reasons for adopting this type of Budget in India.

(i) The continuous revenue deficit in the budget of the country.

(ii) Poor implementation of the Performance Budget.

In the zero-based budget, neither expenses incurred during the previous financial years are considered nor the expenditure of the last financial year used for the coming years.

Under Zero-based budgets, every activity is decided based on a Zero basis i.e. the previous expenditures are not considered. This budget is also known as the ‘Sun Set Budget’ which means the finance department has to present the zero-based budget before the end of the financial year.

In India, Zero Based Budgeting was introduced by the mainstream Research organization, Council of Scientific and Industrial Research and the Central Government adopted the same in 1987-88.

4. Outcome Budget: In India, development-related schemes such as MGNREGA, NRHM, Mid Day Meal, PMGSY, Digital India, Prime Minister Skill Development Council, etc. are launched every year and a large sum of money is spent on these schemes. However, at present, the government doesn’t have any parameters to measure the results of these schemes.

Sometimes, the delay in the implementation of the schemes causes an increase in the cost of these schemes.  Therefore, in order to reduce this cost, the Government of India introduced the Outcome Budget in 2005.

 

Outcome Budget acts as a pathfinder for all the Ministries and Departments which helps in improving Services, the performance of the programmes.

5. Gender Budget: If a budget describes the schemes and plans for the welfare of children and females, it is known as Gender Budget. Through Gender Budget, the Government declares an amount to be spent on the development, welfare, and empowerment schemes and programs for Females.

Important Glossary Related to Union Budget

1. Union Budget

Under Article 112 of the constitution, a statement of estimated receipts and expenditures, called the ‘Annual Financial Statement’, has to be placed before Parliament for each financial year.

This Statement is the main budget document. It is an estimate of the Government’s revenue and expenditure at the end of a fiscal year, which runs from April 1 to March 31.

A Union Budget is the most comprehensive report of the Government’s finances, in which revenues from all sources and outlays to all activities are consolidated. The budget also contains estimates of the Government’s accounts for the next fiscal, called budgeted estimates.

2. Capital Budget

The capital budget consists of capital receipts and payments. Capital receipts are Government loans raised from the public, Government borrowings from the Reserve Bank and treasury bills, divestment of equity holding in public sector enterprises, loans received from foreign Governments and bodies, securities against small savings, State provident funds, and special deposits.

It also includes investments in shares, and loans and advances granted by the Central Government to State Governments, Government companies, corporations, and other parties.

 

3. Revenue Budget

The revenue budget consists of revenue receipts of the Government and its expenditure. Revenue receipts are divided into tax and non-tax revenue. Tax revenues constitute taxes like income tax, corporate tax, excise, customs, service and other duties that the Government levies.

The non-tax revenue sources include interest on loans, dividend on investments etc.

Revenue expenditure is the expenditure incurred on the day-to-day running of the Government and its various departments, and for services that it provides.

This expenditure does not result in the creation of assets. In case the difference between revenue receipts and revenue expenditure is negative, there is a revenue deficit.

It shows the shortfall of the Government’s current receipts over current expenditure. If the capital expenditure and capital receipts are taken into account too, there will be a gap between the receipts and expenditure in a year. This gap constitutes the overall budgetary deficit, and it is covered by issuing 91-day Treasury Bills, mostly held by the Reserve Bank.

Revenue surplus is the excess of revenue receipts over revenue expenditure.

4. Fiscal Deficit

This is the gap between the Government’s total spending and the sum of its revenue receipts and non-debt capital receipts.

It represents the total amount of borrowed funds required by the Government to completely meet its expenditure. The gap is bridged through additional borrowing from the Reserve Bank of India, issuing Government securities etc. The fiscal deficit is one of the major contributors to inflation.

5. Primary Deficit

The primary deficit is the fiscal deficit minus interest payments. It tells how much’ of the Government’s borrowings are going towards meeting expenses other than interest payments. In other words, it is the difference between the current year’s fiscal deficit and the interest that had to be paid in the previous year’s budget.

Primary Deficit is calculated by:

6. Finance Bill

The Government proposals for the levy of new taxes, alterations in the present tax structure, or continuance of the current tax structure are placed before the Parliament in this bill. The bill contains amendments proposed to direct and indirect taxes.

7. Direct and Indirect Taxes

Direct taxes are levied on the incomes of individuals and corporations. For example, income tax, corporate tax, etc. Indirect taxes are paid by consumers when they buy goods and services. These include excise duty, customs duty etc.

8. Central plan outlay: It refers to the allocation of monetary resources among the different sectors in the economy and the ministries of the Government. The different sectors include energy, transport, social services, general economics services, communications, science and tech, rural development, agriculture, and so on.

9. Public account: The Government acts as a banker for transactions relating to provident funds, small savings collection etc. The Public Account of India was set up by the Article 266 of the Indian Constitution.

The Public Account Funds are not the government’s property and have to paid back to the people or the organization(s) who have deposited them.

The funds that the Government thus receives from its bank-like operations are kept in the public account, from which the related disbursements are made.

11. Balance of payments: Balance of payments is the difference between the demand for, and supply of, a country’s currency on the foreign exchange market. In layman words, Balance of Payment (BoP) is the difference between the total amount of money entering a country over a specific time period and the total amount of money leaving the country to the rest of the world.

12. Budget Estimates: It is an estimate of fiscal and revenue deficits for the year. The term is associated with the estimates of the Centre’s spending during the financial year and the income received through taxes. In layman’s words,  Budget Estimates are the funds allotted for various occupations, activities, and ministries. 

13. Capital Receipt: Loans raised by the Centre from the market. Government borrowings from the Reserve Bank and other parties, the sale of Treasury Bills, and loans received from foreign governments form a part of capital receipt.

Other items that also fall under this category include the recovery of loans granted by the Centre to State Governments and proceeds from the disinvestment of Government stakes in public sector undertakings.

14. Consolidated Fund: Under this, the Government pools all its funds together.

It includes all Government revenues, loans raised, and recoveries of loans granted.

All expenditure of the Government is incurred from the consolidated fund and no amount can be withdrawn from the fund without the authorization of the Parliament.

15. Contingency Fund: This is a fund used for meeting emergencies where the Government cannot wait for authorization of the Parliament. The Government subsequently obtains Parliamentary approval for the expenditure. The amount spent from the contingency fund is returned to the fund later.

16. Monetary Policy: This comprises actions taken by the central bank to regulate the level of money of liquidity in the economy, or change the interest rates.

50 GK Questions on Union Budget & Economic Survey

1.  Which of the following statement is correct about Budget?

I. It is a statement of financial position for a future period, setting out proposed expenditure and means of financing it.

II. Article 111 of the Constitution requires the government to present to Parliament a statement of estimated receipts and expenditure in respect of every financial year.

Select correct one:

A. Only I

B. Only II

C. Both I & II

D. Neither I nor II

Ans: A

2. Which of the following is related to Operation Green’ mission?

A. Production of tomato, onion and potatoes

B. Production of tomato, chilli and potatoes

C. Production of pulses, onion and potatoes

D. Production of tomato, pulses and rice

Ans: A

3.  Which of the following policy (Yojna) bring 5 lakh acres under organic farming?

A. Shyama Prasad Mukherji Rurban Mission

B. Pramaparagat Krishi Vikas Yojna

C. Pradhan Mantri Krishi Sichai Yojna

D. PM Fasal Bima Yojna

Ans: B

A. Skill Development Programme

B. Companies Amendment Bill

C. Public Utility Resolution of Disputes Bill

D. Goods & Services Tax

Ans: C

5. Service Tax to be exempted on general insurance schemes under which scheme:

A. Companies Amendment Bill

B. Shyama Prasad Mukherji Rurban Mission

C. Customer Act

D. NIRMAYA Scheme

Ans: D

GK Questions & Answers on Indian Polity & Governance Set 1

6. Consider the following statement (s) is/are related to the annual financial statement (Budget)

I. The annual financial statement is divided into three parts, consolidated fund, contingency fund and public account.

II. All revenues raised by the government, money borrowed and receipts from loans given by the government flow into the consolidated fund of India.

Select the correct statement (s):

A. Only I

B. Only II

C. Both I & II

D. I, II and III

Ans: D

7. Which of the following Yojna gave nominal premium and highest ever compensation in case of crop loss?

A. PM Fasal Bima Yojna

B. PM Krishi Sinchai Yojna

C. Shyama Prasad Mukherji Rurban Mission

D. Pramaparagat Krishi Vikas Yojna

Ans: A

8.  Consider the following statement (s) is/are related to the MUDRA Yojna.

I. It has been initially formed as a wholly-owned subsidiary of Small Industries Development Bank of India (SIDBI) with 100% capital being contributed by it.

II. According to this yojana, the loan is issued through a Mudra credit card with a pre-assigned credit limit and the repayment tenure is as high as 7 years.

Code:

A. Only I

B. Only II

C. Both I and II

D. Neither I nor II

Ans: C

9. Which of the following scheme is related to the management and conversion of cattle dung and solid in farms to compost, fertilizer, bio-gas and bio-CNG?

A. Galvanizing Organic Bio-Agro Resources Dhan

B. Swachchh Bharat Abhiyan

C. Pradhan Mantri Jeevan Jyoti Beema Yojna

D. Prime Minister Krishi Sinchai Yojna

Ans: A

10. Consider the following statement (s):  

I. Budget is the process of preparing business estimates

II. Budgetary control is the means to achieve performance on the basis of the budget

Which of the following statements is/are correct about budget, budgeting & budgetary control?

A. Only I

B. Only II

C. Both I and II

D. Neither I nor II

Ans: B

GK Questions & Answers on Indian Polity & Governance Set 2

I. Budgetary control is a wider concept whereas Budget and budgeting are narrower concepts

II. Budget is the process of preparing business estimates.

Which of the following statements is/are correct?

A. Only I

B. Only II

C. Both I and II

D. Neither I nor II

Ans: A

12. According to the 2018-19 budget speech of Arun Jaitley, India is at third rank on the basis of what?

A. Purchasing Power Parity (PPP)

B. Gross domestic product (GDP)

C. Agricultural Prodution

D. Foreign Direct Investment (FDI)

Ans: A

13. Which of the following new restructured scheme was launched to increase the governance capabilities of PRIs?

A. National Skill Development Mission

B. PM Kaushal Vikas Yojana

C. Swaccha Bharat Abhiyaan

D. Rashtriya Gram Swaraj Abhiyan

Ans: D

14. Which of the following three public general insurance companies will be merged into a single insurance company as per Budget 2018-19?

A. UTI, Oriental Insurance and National Insurance

B. LIC, Bharti AXA and United Insurance

C. General Insurance, Max Bupa and UTI

D. Agriculture Insurance Company of India Limited, Bharti AXA and United Insurance

Ans: A

15. What do you mean by “Fiscal Federalism”?

A. It refers to the devolution of power and responsibilities of national, sub-national, and governments.

B. It refers to the financial relations between units of government in a federal government system.

C. It is the amount of money that households have available for spending and saving after income taxes have been accounted for.

D. It states that when per capita income increases above the minimum specific level, population tens to increase.

Ans: B

GK Questions & Answers on Indian Polity & Governance Set 3

16.  Select the incorrect phase of the budget process in India.

A. Budget formulation: the preparation of estimates of expenditure and receipts for the ensuing financial year;

B. Budget enactment: approval of the proposed Budget by the Legislature through the enactment of Finance Bill and Appropriation Bill

C. Budget execution: enforcement of the provisions in the Finance Act and Appropriation Act by the government—a collection of receipts and making disbursements for various services as approved by the Legislature.

D. Judicial review of budget implementation: audits of government’s financial operations on behalf of the Legislature.

Ans: D

17. Who was the first Finance minister of independent India?

A. Shanmukhan Chetty

B. John Mathai

C. C. D Deshmukh

D. Liaquat Ali Khan

Ans: A

18. Select the correct component of the Components of the Union (Central) Budget of India?

A. Revenue Budget

B. Capital Budget

C. Expenditure Budget

D. Both A & B

Ans: D

19. Find out the correct definition of Capital payments?

A. It refers to capital expenditures on construction of capital projects and acquisition of assets like land, buildings machinery and equipment.

B. It refers to capital revenue collected from the construction of capital projects and acquisition of assets like land, buildings machinery and equipment.

C. It is the expenditure incurred on the day-to-day running of the Government and its various departments, and for services that it provides.

D. None of the above

Ans: A

20. 300 rurban clusters to be set up under which of the following schemes?

A. Shyama Prasad Mukherji Mission

B. Pradhan Mantri Awas Yojna

C. Indira Awas Yojna

D. NIRMAYA Scheme

Ans: A

21. Which of the following is not the objective of the Indian Budget?

I. To manage and properly distribute resources

II. To reduce inequalities in income and wealth

III. To achieve social stability

Code:

A. Only I

B. Only II

C. Only III

D. I, II & III

Ans: C

22. Which of the following is the most likely to cause the current account deficit in India?

I. Reduced excise duties on Sports Utility Vehicles

II. Reduced duties on Gold

III. Ban on the export of Onions

Code:

A. Both I & II

B. Both II & III

C. Only I & III

D. I, II & III

Ans: D

23.  Examine the following statement (s) in the context of Zero-Based Budgeting (ZBB).

I. It was first taken up in India in the Union Budget 1987

II. It is based on prioritizing all governing expenditure

III. There is a cost-benefit analysis of all schemes and the most important ones are kept alive if they are working well.

Which of the following statement (s) given above are correct?

A.  I and II

B. I and III

C.  II and III

D. All of these

Ans: A

24. What is the difference between ‘vote-on account’ and ‘interim budget’?

I. The provision of a vote-on-account is used by a regular government, while the interim budget is a provision used by a caretaker government.

II. A vote-on-account only deals with the expenditure in the government’s budget while an interim budget includes both expenditure and receipts

Which of the following statement (s) given above are correct?

A.  Only I

B. Only II

C. Both I and II

D. Neither I nor II

Ans: C

25. With reference to Indian Public Finance, consider the following statements (s).

I. Disbursement from Public Account of India are subject to the Vote of Parliament.

II. The Indian Constitution provides for the establishment of a Consolidated Fund, a Public Account and a Contingency Fund for each State.

III. Appropriations and disbursements under the Railways Budget are subject to the same form of parliamentary control as other appropriations and disbursement.

Which of these statements are correct?

A. I and II

B. II and III

C. I and III

D. I, II and III

Ans: B

26. The authorization for the withdrawal of funds from the Consolidated Fund of India must come from:

A. The President of India

B. The Parliament of India

C. The Prime Minister of India

D.  The Union Finance Minister

Ans: B

27. When the annual budget is not passed by the Lok Sabha__________.

A. the Budget is modified and presented again

B. the Budget is referred to the Rajya Sabha for suggestions

C. the Union Finance Minister is asked to resign

D. the Prime Minister submits the resignation of Council of Ministers

Ans: D

28. The Vote on Account is passed:

A. After the voting of demands

B. Before the general discussion

C. After the general discussion

D. Either after the voting of the demands or after the general discussion.

Ans: C

29. Arrange the following stages in the enactment of the budget in proper order:

I. General discussion

II. Appropriation Bill

III. Finance Bill

IV. Voting of the demands for grant

V. Presentation to the legislature

A. I, II, III, IV, V

B.  V, I, II, III

C.  V, I, IV, III, II

D. V, I, III, IV, II

Ans: B

30. Which of the following documents are presented to the legislature along with the budget?

I. An explanatory memorandum on the budget

II. A summary of demands for grants

III. An Appropriation Bill

IV. A Finance Bill

V. The economic survey

Code:

A. I, III and V

B. I, II and III

C.  II, III and V

D.  I, II, III and IV

Ans: D

 

31. The number of demands in the General Budget for civil expenditures is:

A. 109

B. 106

C. 103

D. 102

Ans: C

32. The word ‘Budget’ is mentioned in which of the following Articles of the Constitution of India:

A. Art. 266

B. Art. 112

C. Art. 265

D. None

Ans: D

33. The budget was formally introduced in India in:

A. 1860

B. 1947

C. 1950

D. 1868

Ans: A

34. The correct statements about the Public Account of India are:

I. The public account is the fund to which all public money received by or on behalf of the government are credited.

II. No legislative appropriation is required for payments from the Public Account of India.

III. Legislative appropriation is required for payments from the Public Account of India.

IV. All public money, other than those credited to the Consolidated Fund of India, which are received by or on behalf of the government is credited to the Public Account of India.

V. It is operated by executive action.

A. I, II and V

B. I, III and V

C.  II, IV and V

D.  II and IV

Ans: C

35. Which of the following statements are incorrect?

I. Appropriation Bill cannot be amended while the Finance Bill can be amended.

II. Finance Bill cannot be amended while Appropriation Bill can be amended.

III. Same procedure governs both the Appropriation Bill and the Finance Bill.

IV. Appropriation Bill and the Finance Bill are governed by different procedures.

V. Appropriation bill cannot be rejected by the Rajya Sabha while Finance Bill can be rejected by it.

A. II and IV

B. II, IV and V

C. I and III

D. I, III and V

Ans: B

36. Which of the following social campaign of the Government of India aims to generate awareness and improve the efficiency of welfare services intended for girls?

A. Beti Bachao, Beti Padhao

B. Gender sensitisation

C. Ladli

D. Swachchha Bharat Mission

Ans: A

37. Which of the following component has been given the option to remain open all seven days in a week across markets?

A. Malls

B. Private Offices

C. Banks

D. Shops

Ans: D

38. Which of the following Schemes has the Objective to skill 1 crore youth in the next 3 years?

A. Startup, Standup

B. PM Kaushal Vikas Yojna

C. MGNREGA

D. Deen Dayal Upadhyay Grameen Kaushalaya Yojna

Ans: B

39. Which Cess is levied 0.5 per cent on all services?

A. Swachh Bharat

B. Krishi Kalyan

C. Kaushal Vikas

D. Both A & B

Ans: D

40.  Which of the following items become costlier after the Budget 2018-19?

A. Tobacco

B. Cigar

C. Cigarette

D. All of the above

Ans: D

41. What do you understand by the term ‘Budget’ and why do we need a Budget?

Ans: Budget is the annual financial statement of the estimated receipts and expenditure of the government for the particular year. It is a legal document because the legislature passes it and the President approves it. The prime motive of Government financial management is to determine how adequately the financial and resource management responsibilities have been discharged.

42.  How the budget is prepared in India?

Ans:  The budget is prepared in India through the following six stages in the Parliament:

1. Presentation of Budget

2. General Discussion

3. Scrutiny by departmental committees

4. Voting on Demands for grants

5. Passing of appropriation bill

6. Passing of finance bill.

43. What is Financial Bill?

Ans: Finance Bill is a Money Bill as defined in Article 110 of the Constitution. It is proposals of the government for levy of new taxes, modification of the existing tax structure or continuance of the existing tax structure beyond the period approved by Parliament are submitted to Parliament through this bill.

44. What is the ‘Rules of Procedure and Conduct of Business in the Lok Sabha for the presentation Budget?

Ans:  According to Article 204(1) of Rules of Procedure and Conduct of Business in the Lok Sabha, the Budget is presented on the day as fixed by the President of India. Usually, it is presented at 11 am on the last working day of February about a month before the beginning of the financial year.

45. What is the role of the Vote on Account while presenting the budget?

Ans: Vote-on-account refers to a vote on the accounts of the government. Usually, the annual budget is presented by the end of February after which it is discussed — details of the budget are scrutinized by a Parliamentary committee and it is finally passed by mid-May. It is taken whereby a government gets parliamentary approval to run the government for a few months, using funds drawn from the Consolidated Fund of India.

46. Explain the objective of GAAR (General Anti-Avoidance Rule) which is implemented from 1 April 2017?

Ans: GAAR (General Anti-Avoidance Rules) is a tool for checking aggressive tax planning especially that transaction or business arrangement which is/are entered into with the objective of avoiding tax. It is proposed by the then Union Finance Minister Pranab Mukherjee during the annual budget 2012-13- is anti-tax avoidance rule, drafted by the Union Government of India, which prevents tax evaders, from routing investments through tax havens like Mauritius, Luxemburg, Switzerland.

47. Explain the term “Interim Budget”?

Ans: Interim budget is a complete set of accounts, including both expenditure and receipts. It also can be presented by all governments whether incumbent or regular or caretaker, however, the Interim Budget becomes of special importance when the elections are underway and a caretaker government is in place. It can also be presented when a new Government has recently been sworn in.

48. What are the legal provisions underlying the budgetary process?

Ans: The legal provision underlying the budgetary process is discussed below:

Article 112 in The Constitution of India envisages under article 112 for the creation of the Annual financial statement. The President shall in respect of every financial year cause to be laid before both the Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that year, in this Part referred to as the annual financial statement. The estimates of expenditure embodied in the annual financial statement shall show separately. Then Rules 204—221 and 331-E of the Rules of Procedure and Conduct of Business in the Lok Sabha and lastly validated by the Direction 19-B of Directions the Speaker.

49. What is Money Bill?

Ans: The Constitution of India enshrine under Article 110 (1) that when a Bill is deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters: the imposition, abolition, remission, alteration or regulation of any tax; regulation of borrowing by the government; custody of the Consolidated Fund or Contingency Fund of India, and payments into or withdrawals from these Funds; appropriation of money out of the Consolidated Fund of India; declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure; receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State.

50.  What are the components of the Budget?

Ans:  There are 14 components of the Budget which are given below:

1. Annual Financial Statement

2. Demands for Grants

3. Receipts Budget

4. Expenditure Budget Volume 1

5. Expenditure Budget Volume 2

6. Finance Bill

7. Appropriation Bill

8. Memorandum explaining the provisions in the Finance Bill

9. Budget at a Glance

10. Highlights of the Budget

11. Macro-economic policy framework for the relevant financial year

12. Fiscal Policy Strategy Statement for the financial year

13. Medium-term Fiscal Policy Statement

14. Medium-term Expenditure Framework Statement

GK Based on 2023-24 Budget

Q1. Union Finance Minister, Nirmala Sitharaman is presenting the Union Budget 2023 for the ________ time in a row.
(a) 10th
(b) 4th
(c) 3rd
(d) 5th
(e) 6th

Q2. The Budget 2023 focuses on _______ priorities, which the FM called the “Saptrishis guiding us through Amrit Kaal”.
(a) Fifth
(b) Sixth
(c) Seven
(d) Eigth
(e) Nine

Q3. When was the first Union Budget of India presented?
(a) 1947
(b) 1948
(c) 1949
(d) 1950
(e) 1951

Q4. What time is the Union Budget presented?
(a) 9 AM
(b) 11 AM
(c) 12 PM
(d) 1 PM
(e) 2 PM

Q5. What is the current year’s economic growth is estimated at the Union budget 2023?
(a) 4%
(b) 8%
(c) 7%
(d) 6%
(e) 9%

Q6. What is the maximum deposit limit for Senior Citizen Savings Scheme will be enhanced from?
(a) 05 lakh to 30 lakh
(b) 10 lakh to 30 lakh
(c) 15 lakh to 30 lakh
(d) 20 lakh to 30 lakh
(e) 25 lakh to 30 lakh

Q7. The outlay for Pradhan Mantri Awas Yojana is being enhanced by 66% to over _______.
(a) ₹39,000 cr
(b) ₹49,000 cr
(c) ₹59,000 cr
(d) ₹69,000 cr
(e) ₹79,000 cr

Q8. What is the rate of tax for Income tax slab between the income of Rs 3 Lakh to Rs 6 Lakh for assessment year 2023-24?
(a) 5%
(b) 10%
(c) 15%
(d) 20%
(e) 30%

Q9. “Bharat SHRI” will be set up in a digital epigraphy museum, with digitization of one lakh ancient inscriptions in the first stage. What does “I” stand for SHRI?
(a) India
(b) Intrapictures
(c) Inscriptions
(d) Industries
(e) Indicator

Q10. Where is the budget presented by the Government?
(a) Lok Sabha
(b) Rajya Sabha
(c) Krishi Bhawan
(d) North Bhawan
(e) President House

Q11. What is the rate of tax for Income tax slab between the income of Rs 9 Lakh to Rs 12 Lakh for assessment year 2023-24?
(a) 5%
(b) 10%
(c) 15%
(d) 20%
(e) 30%

Q12. What is the capital outlay has been provided for the Railways in the Union Budget 2023-24?
(a) 1.40 lakh crore
(b) 2.40 lakh crore
(c) 3.40 lakh crore
(d) 4.40 lakh crore
(e) 5.40 lakh crore

Q13. The finance minister proposed to reduce the highest surcharge rate from 37 per cent to ________ in the new tax regime.
(a) 15 per cent
(b) 25 per cent
(c) 35 per cent
(d) 45 per cent
(e) 55 per cent

Q14. Finance Minister Nirmala Sitharaman presented Union Budget on February 1, 2023. In the 2023 Budget speech, Sitharaman spoke for ______.
(a) 1 hour and 44 minutes
(b) 1 hour and 45 minutes
(c) 2 hours and 42 minutes
(d) 1 hour and 25 minutes
(e) 2 hours and 10 minutes

Q15. In the which year, Finance Minister Nirmala Sitharaman replaced the Budget briefcase with the traditional ‘Bahi Khata’ having the National Emblem?
(a) 2015
(b) 2016
(c) 2017
(d) 2018
(e) 2019

Q16. The Centre has pegged the fiscal deficit _______ of GDP for FY24.
(a) 3.9 percent
(b) 4.3 percent
(c) 5.9 percent
(d) 6.6 percent
(e) 7.9 percent

Q17. What is the budget allocated for National Green Hydrogen Mission to shift low-carbon economy and reduce reliance on fossil fuel?
(a) Rs 15,700 crore
(b) Rs 16,700 crore
(c) Rs 17,700 crore
(d) Rs 18,700 crore
(e) Rs 19,700 crore

Q18. The defence budget was increased to ________ crore for 2023-24 from last year’s allocation of ₹5.25 lakh crore.
(a) ₹5.94 lakh
(b) ₹5.90 lakh
(c) ₹5.66 lakh
(d) ₹5.70 lakh
(e) ₹5.75 lakh

Q19. Which country first introduced budget?
(a) Australia
(b) England
(c) USA
(d) China
(e) India

Q20. According to which article of the Indian Constitution, the Union Budget of a year is referred to as the Annual Financial Statement?
(a) Article 108
(b) Article 101
(c) Article 115
(d) Article 113
(e) Article 112

Solutions

S1. Ans.(d)
Sol. Union Finance Minister, Nirmala Sitharaman is presenting the Union Budget 2023 for the 5th time in a row. She will be presenting the financial statements and tax proposals for the fiscal year 2023-24 (April 2023 to March 2024).

S2. Ans.(c)
Sol. The Budget 2023 focuses on seven priorities, which the FM called the “Saptrishis guiding us through Amrit Kaal”.

S3. Ans.(a)
Sol. The first Finance Minister of independent India was R. K. Shanmukham Chetty. He presented the first Union budget of India on 26 Nov.1947. The first mini-budget was presented by T. T. Krishnamachari on November 30, 1956.

S4. Ans.(b)
Sol. The Union Budget session 2023, will be presented by Finance Minister Nirmala Sitharaman at 11 AM and will continue for up to two hours.

S5. Ans.(c)
Sol. In the 75th year of our Independence, the world has recognised the Indian economy as a ‘bright star’. Our current year’s economic growth is estimated to be at 7 per cent.

S6. Ans.(c)
Sol. The maximum deposit limit for Senior Citizen Savings Scheme will be enhanced from ` 15 lakh to ` 30 lakh.

S7. Ans.(e)
Sol. The outlay for Pradhan Mantri Awas Yojana is being enhanced by 66% to over ₹79,000 cr.

S8. Ans.(a)
Sol. 5% is the rate of tax for Income tax slab between the income of Rs 3 Lakh to Rs 6 Lakh for assessment year 2023-24.

S9. Ans.(c)
Sol. ‘Bharat Shared Repository of Inscriptions’ will be set up in a digital epigraphy museum, with digitization of one lakh ancient inscriptions in the first stage.

S10. Ans.(a)
Sol. According to the Constitution of India’s Article 110, a Finance Bill is a Money Bill which is presented only in the Lok Sabha or the lower house of the Parliament.

S11. Ans.(c)
Sol. 15% is the rate of tax for Income tax slab between the income of Rs 9 Lakh to Rs 12 Lakh for assessment year 2023-24.

S12. Ans.(b)
Sol. A capital outlay of ` 2.40 lakh crore has been provided for the Railways. This highest ever outlay is about 9 times the outlay made in 2013-14.

S13. Ans.(b)
Sol. The finance minister proposed to reduce the highest surcharge rate from 37 per cent to 25 per cent in the new tax regime.

S14. Ans.(d)
Sol. In the 2023 Budget speech, Sitharaman spoke for 1 hour and 25 minutes.

S15. Ans.(e)
Sol. In the year 2019, Finance Minister Nirmala Sitharaman replaced the Budget briefcase with the traditional ‘Bahi Khata’ having the National Emblem.

S16. Ans.(c)
Sol. The Centre has pegged the fiscal deficit for 2022-2023 and 5.9 percent of GDP for FY24, Finance Minister Nirmala Sitharaman said during her Union Budget speech.

S17. Ans.(e)
Sol. The recently launched National Green Hydrogen Mission, with a budget of Rs 19,700 crore, will help the country shift to a low-carbon economy and reduce reliance on fossil fuel imports.

S18. Ans.(a)
Sol. This is an increase from last year’s allocation of ₹5.25 lakh crore. The defence budget was increased to ₹5.94 lakh crore for 2023-24 from last year’s allocation of ₹5.25 lakh crore.

S19. Ans.(b)
Sol. England was the highest country in the world to establish a modern government budget. After the triumph of the bourgeois revolution in 1640, England, as a parliamentary monarchy, had all of its financial powers controlled by Parliament.

S20. Ans.(e)
Sol. According to Article 112 of the Indian Constitution, the Union Budget of a year is referred to as the Annual Financial Statement (AFS)…. Read more at: https://www.bankersadda.com/current-affairs-questions-based-on-union-budget-2023-24/