Public Expenditure Multiple Choice Questions and Answers

11. Pick out the factor which is not a part of revenue budget

1. Current consumption expenditure on commodities
2. Current consumption expenditure on services
3. Transfer payments
4. Expenditure on machinery

12. Pick out the feature which is not applicable to a good budget

1. Comprehensiveness
2. Clarity
3. Objectivity
4. Lengthy

13. Pick out the feature which is not true in the case of repudiation of debt

1. Simplest method of liquidating a debt
2. It will increase the credibility of the government
3. Debtors may face loss
4. It is discriminating

14. Pick out the feature which is not true of a capital levy

1. For paying off unproductive debt
2. It is paid by those who earn huge profits
3. It does not follow the principle of equity
4. It helps to fight inflation

15. Pick out the item which is not a part of capital budget

1. Market Borrowings
2. Sale of Treasury Bulls
3. Revenue from Industry
4. Net Small Savings

16. Pick out the item which is not a part of non-plan expenditure on the revenue side

1. Defence
2. Central Assistance to states
3. Subsidies
4. None of the above

17. Pick out the item which is not a part of non-tax revenue

1. Interest Receipts
2. Dividends
3. Customs
4. Profits

18. Pick out the item which is not a part of tax revenue

1. Interest
2. Corporate Tax
3. Excise
4. Customs

19. Pick out the item which is not a part of the plan expenditure

1. Agriculture
2. Industry
3. Social Services
4. Defence

20. Pick out the method which is not a part of redemption

1. Sinking Fund
2. Surplus Budget
3. Terminal Annuities
4. Refunding