Question : The term "disinvestment" in the government budget refers to:
Option 1: Reduction in public expenditure
Option 2: Sale of government assets or shares in public sector enterprises
Option 3: Increase in subsidies
Option 4: Borrowing from international financial institutions
Correct Answer: Sale of government assets or shares in public sector enterprises
Solution : The correct answer is (b) Sale of government assets or shares in public sector enterprises.
In the context of the government budget, the term "disinvestment" refers to the process of selling government-owned assets or shares in public sector enterprises (PSEs) to private entities or the public. This action aims to reduce the government's ownership and control in PSEs and can be done through methods such as Initial Public Offerings (IPOs), strategic sales, or auctions.
Disinvestment is a way for the government to raise funds and reduce its financial burden. By selling government assets or shares, it brings in revenue that can be used for various purposes, such as reducing fiscal deficits, financing development projects, or meeting other expenditure requirements.
Question : The government's disinvestment refers to the ____________.
Option 1: Sale of shares in public sector enterprises
Option 2: Reduction in defense expenditure
Option 3: Repayment of external debt
Option 4: Increase in indirect taxes
Question : Disinvestment refers to the sale of government equity or shares in:
Option 1: Public sector enterprises
Option 2: Private sector enterprises
Option 3: Foreign sector enterprises
Option 4: Cooperative sector enterprises
Question : Which of the following is a revenue receipts?
Option 1: Profit of public sector undertaking
Option 2: Sale of public sector undertaking
Option 3: Disinvestment
Option 4: Rise from sale of shares of public sector undertaking
Question : The "Annual Financial Statement" in the government budget includes:
Option 1: Revenue Budget and Capital Budget
Option 2: Receipts Budget and Expenditure Budget
Option 3: Consolidated Fund and Public Account
Option 4: Direct Taxes and Indirect Taxes
Question : The government's non-plan expenditure includes ____________.
Option 1: Subsidies
Option 2: Grants for specific projects
Option 3: Repayment of loans
Option 4: Investments in public sector enterprises
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