Question : The government's revenue expenditure includes ____________.
Option 1: Interest payments
Option 2: Loans and advances
Option 3: Purchase of assets
Option 4: Grants to states
Correct Answer: Grants to states
Solution : The correct answer is (D) Grants to states.
The government's revenue expenditure includes various types of expenses, such as salaries and wages of government employees, pensions, subsidies, grants to states, interest payments on debt, and day-to-day operational expenses. Grants to states are a significant component of revenue expenditure as they involve transfers of funds from the central government to state governments for various purposes, such as social welfare programs, infrastructure development, and education.
Question : It is incurred mainly for acquisition of assets and granting of loans and advances.
Option 1: Revenue expenditure
Option 2: Capital expenditure
Option 3: Primary expenditure
Option 4: Budgetary expenditure
Question : The government's revenue receipts include ____________.
Option 1: Grants-in-aid
Option 2: Dividends from public sector enterprises
Option 3: Repayment of loans
Option 4: Sale of government assets
Question : The government's non-plan expenditure includes ____________.
Option 1: Subsidies
Option 2: Grants for specific projects
Option 4: Investments in public sector enterprises
Question : The government's capital expenditure is primarily directed towards ____________.
Option 2: Subsidies
Option 3: Defense expenditure
Option 4: Salaries and wages
Question : Which of the following is correct.
Option 1: Primary deficit= fiscal deficit + interest payments
Option 2: Revenue deficit= total expenditure - total receipts
Option 3: Fiscal deficit= revenue expenditure - revenue receipts
Option 4: Primary deficit= fiscal deficit - interest payments. Hence, Option D is correct.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile