Read the passage given below and answer the following questions from 1 to 4. India has scaled back expenditure, including on productive assets that aid economic growth, as the government is confronted with the risk of its budget deficit blowing out. Capital expenditure-the money spent on creating, maintaining or improving fixed assets like roads and factories-Stood at 40% of the budgeted amount in the six months to September, down from 55.5% in the year-ago period, data from the government's Controller General of Accounts show. The overall spending during the period was 49% of the budget aim compared to 53% last year. That's despite Prime Minister Narendra Modi's Government outlining measures worth more than 21 trillion rupees (281 billion) to counter the economic and social fallout of the Covid-19 outbreak. A closer look at the numbers shows the bulk of the spending was directed towards the poor and the farmers, with crucial sectors such as coal, power, shipping and steel receiving less than a third of their annual budget allocation. Spending on capital assets has so far trailed the so-called revenue expenditure that includes interest payments and overheads such as salaries, the data released last week showed. Modi's Government placed spending curbs on some ministries from April through December to manage its cash flow. Source: Business Standard, Nov. 5, 2020
  1. Capital expenditure of the government ............ the assets of the government:
  1. Increases
  2. Decreases
  3. Both [a] and [b]
  4. None of these
  1. Expenditure on health due to Covid-19 is ............ expenditure of the government.
  1. Direct
  2. Revenue
  3. Both [a] and [b]
  4. None of these
  1. The overall spending has......... as compared to last year.
  1. Increased
  2. Decreased
  3. Both [a] and [b]
  4. None of these
  1. A closer look at the numbers shows the bulk of spending was directed towards the poor and the.............?
  1. Farmers
  2. Labour
  3. Manager
  4. None of these
 
 
Download our app for free and get startedPlay store
  1. (A) Increases
  2. (B) Revenue
  3. (B) Decreased
  4. (A) Farmers
art

Download our app
and get started for free

Experience the future of education. Simply download our apps or reach out to us for more information. Let's shape the future of learning together!No signup needed.*

Similar Questions

  • 1
    Distinguish between ‘revenue expenditure’ and ‘capital expenditure’. Give two examples of each.
    View Solution
  • 2
    Explain 'revenue deficit' in a Government budget? What does it indicate?
    View Solution
  • 3
    If you are appointed as the Finance Minister of India, which taxes would you prefer, direct taxes or indirect taxes and why?
    View Solution
  • 4
    What are implications of fiscal deficit?
    View Solution
  • 5
    Calculate investment expenditure from the following data about an economy which is in equilibrium:
    National income = 1000
    Marginal propensity to save = 0.25
    Autonomous consumption expenditure = 200
    View Solution
  • 6
    Giving reasons, categorise the following into revenue receipts and capital receipts:
    1. Recovery of loans.
    2. Corporation tax.
    3. Dividends on investments made by government.
    4. Sale of a public sector undertaking.
    View Solution
  • 7
    Calculate marginal propensity to consume from the following data about an economy which is in equilibrium:
    National income = 1500
    Autonomous consumption expenditure = 200
    Investment expenditure= 300
    View Solution
  • 8
    If you were to be appointed as the Finance Minister of India, which taxes would you prefer: direct taxes or indirect taxes and why?
    View Solution
  • 9
    From the following data about a Government budget, find out (a) Revenue deficit, (b) Fiscal deficit and (c) Primary deficit:
        (Rs. Arab)
    (i)
    Capital receipts net of borrowings
    95
    (ii)
    Revenue expenditure
    100
    (iii)
    Interest payments
    10
    (iv)
    Revenue receipts
    80
    (v)
    Capital expenditure
    110
    View Solution
  • 10
    Distinguish between:
    1. Capital receipts and revenue receipts.
    2. Direct tax and indirect tax.
    View Solution