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Governance & Society Cluster331 Verified Questions
Union Budget & Fiscal Policy of India GK Questions & Answers
The Union Budget of India is constitutionally mandated under Article 112 as the Annual Financial Statement, presenting estimated receipts and expenditures of the Government of India for the upcoming financial year (April 1 to March 31). The budget is divided into the Revenue Budget—comprising revenue receipts (tax and non-tax revenues) and revenue expenditure—and the Capital Budget, which encompasses capital receipts (debt recovery, disinvestments, borrowings) and capital expenditure on asset creation. Enactment follows six distinct parliamentary stages: presentation on the first working day of February, general discussion, departmental scrutiny by 24 Departmentally Related Standing Committees (DRSCs), voting on Demands for Grants in the Lok Sabha (incorporating Policy, Economy, or Token Cut Motions), passing of the Appropriation Bill under Article 114 to authorize withdrawals from the Consolidated Fund of India (Article 266(1)), and passing of the Finance Bill under Article 110 for taxation proposals. Key macroeconomic deficit metrics include Revenue Deficit (Revenue Expenditure minus Revenue Receipts), Fiscal Deficit (Total Expenditure minus Non-debt Receipts), and Primary Deficit (Fiscal Deficit minus Interest Payments). The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 establishes statutory benchmarks to regulate debt-to-GDP ratios and eliminate unsustainable revenue deficits.
High-yield conceptual summaries for competitive exams and rapid revision.
Article 112 designates the Union Budget as the Annual Financial Statement; no money can be withdrawn from the Consolidated Fund of India (Article 266) without parliamentary approval via an Appropriation Act (Article 114).
Fiscal Deficit measures total government borrowing requirement, defined mathematically as Total Expenditure minus (Revenue Receipts + Non-debt Capital Receipts).
Primary Deficit equals Fiscal Deficit minus Net Interest Payments, indicating current fiscal stance excluding past accumulated debt servicing obligations.
The Lok Sabha exercises exclusive power over voting on Demands for Grants, during which cut motions (Policy Cut of Re 1, Economy Cut of specified amount, Token Cut of Rs 100) and guillotine closures may be applied.
The Fiscal Responsibility and Budget Management (FRBM) Act, 2003, amended based on the N.K. Singh Committee recommendations (2017), targets a general government debt-to-GDP ratio of 60% (40% Central, 20% States).
Showing 25 Curated Questions331 Total in Bank
1ID: GK-ECON-00057
easyBudget Fiscal Policy
Under Article 112 of the Constitution, the Union Budget is officially designated by which term?
Verified Explanation
Article 112 refers to the annual budget as the "Annual Financial Statement", presenting estimated receipts and expenditures.
2ID: GK-ECON-00069
easyBudget Fiscal Policy
Who presented the first Union Budget of independent India on 26 November 1947?
Verified Explanation
R. K. Shanmukham Chetty served as India's first Finance Minister and presented the interim budget for 1947–48.
3ID: GK-ECON-00188
mediumBudget & Fiscal Policy
From which financial year was the 92-year-old tradition of presenting a separate Railway Budget merged into the Union Budget of India?
Verified Explanation
Based on the recommendations of the Bibek Debroy Committee, the Railway Budget was merged with the Union Budget starting from the 2017–18 financial year (presented on 1 Feb 2017).
4ID: GK-ECON-00203
easyBudget & Fiscal Policy
Under Article 112 of the Indian Constitution, the Union Budget is officially designated as what?
Verified Explanation
Article 112 of the Constitution refers to the Union Budget as the 'Annual Financial Statement', laying out estimated receipts and expenditures.
5ID: GK-ECON-00253
easyBudget & Fiscal Policy
What is the exact constitutional terminology used in Article 112 of the Indian Constitution to describe the annual Union Budget?
Verified Explanation
Article 112 refers to the budget presented to Parliament every financial year as the 'Annual Financial Statement'.
6ID: GK-ECON-00281
mediumBudget & Fiscal Policy
Which historical British-era committee recommended the separation of the Railway Budget from the General Budget in 1924?
Verified Explanation
The Acworth Committee (1920-21) headed by Sir William Acworth recommended separating railway finances from the general budget, a practice that lasted until 2016.
7ID: GK-ECON-00310
easyBudget & Fiscal Policy
Under Article 112 of the Indian Constitution, what is the official term used for the annual Union Budget?
Verified Explanation
Article 112 refers to the Union Budget as the 'Annual Financial Statement' of estimated receipts and expenditure of the Government of India.
8ID: GK-ECON-00330
mediumBudget & Fiscal Policy
Which committee recommended the amalgamation of the separate Railway Budget with the Union General Budget in 2017?
Verified Explanation
Based on the recommendations of the Bibek Debroy Committee on restructuring Indian Railways, the 92-year-old practice of a separate Rail Budget was ended in 2017.
9ID: GK-ECON-00381
mediumBudget & Fiscal Policy
In which year was the 92-year-old tradition of presenting a separate Railway Budget merged with the General Union Budget of India?
Verified Explanation
Following the recommendations of the Bibek Debroy Committee, the Union Cabinet in September 2016 merged the Railway Budget with the Union Budget, presented together in 2017.
10ID: GK-ECON-00487
easyBudget & Fiscal Policy
In which year was the 92-year-old tradition of presenting a separate Railway Budget merged into the Union General Budget?
Verified Explanation
In 2017, the Union Cabinet accepted the Bibek Debroy Committee recommendation to end the separate Railway Budget and merge it with the General Budget.
11ID: GK-ECON-00535
easyBudget & Fiscal Policy
In which month is the Union Budget of India presented in Parliament since the budgetary calendar reforms of 2017?
Verified Explanation
Starting from 2017, the Union Budget is presented on the 1st of February (previously presented on the last working day of February).
12ID: GK-ECON-00545
easyBudget & Fiscal Policy
Under the Constitution of India (Article 112), the official term used for the Union Budget is:
Verified Explanation
Article 112 refers to the budget as the 'Annual Financial Statement', representing estimated receipts and expenditure of the Government of India for that year.
13ID: GK-ECON-00083
easyBudget Fiscal Policy
The "Fiscal Responsibility and Budget Management" (FRBM) Act was enacted in India in which year to institutionalize fiscal discipline?
Verified Explanation
The FRBM Act, 2003 aimed to eliminate revenue deficits, reduce fiscal deficits, and establish inter-generational equity in fiscal management.
14ID: GK-ECON-00110
mediumBudget Fiscal Policy
The "Revenue Deficit" in the Union Budget is calculated as the difference between which two budgetary aggregates?
Verified Explanation
Revenue Deficit indicates that the government's regular operational spending exceeds its recurring non-debt tax and non-tax revenues.
15ID: GK-ECON-00117
mediumBudget Fiscal Policy
The "Gender Budgeting" framework was formally integrated into the Union Budget of India in which financial year?
Verified Explanation
Gender Budgeting statements disclose budgetary allocations earmarked specifically for women and girl-child empowerment programs.
16ID: GK-ECON-00124
mediumBudget Fiscal Policy
The "Guillotine" in Indian parliamentary budget procedure refers to which concluding exercise during the passing of Demands for Grants?
Verified Explanation
On the last day allotted for discussion of demands for grants, the Speaker applies the guillotine, putting all un-debated ministerial demands to immediate vote.
17ID: GK-ECON-00156
easyBudget & Fiscal Policy
Which Article of the Indian Constitution refers to the Union Budget as the "Annual Financial Statement"?
Verified Explanation
Article 112 of the Constitution mandates that the President shall cause to be laid before Parliament the Annual Financial Statement of estimated receipts and expenditure for that year.
18ID: GK-ECON-00173
mediumBudget & Fiscal Policy
What does "Primary Deficit" in the Government of India's Union Budget specifically measure?
Verified Explanation
Primary Deficit = Fiscal Deficit - Interest Payments. It indicates the government's borrowing requirement to meet current expenditures excluding accumulated interest liabilities.
19ID: GK-ECON-00180
mediumBudget & Fiscal Policy
How is 'Primary Deficit' defined and calculated in the Union Budget of India?
Verified Explanation
Primary Deficit is obtained by subtracting interest payments on past borrowings from the current Fiscal Deficit.
20ID: GK-ECON-00210
easyBudget & Fiscal Policy
What does 'Fiscal Deficit' represent in the Union Budget of India?
Verified Explanation
Fiscal Deficit measures the total borrowing requirement of the government, calculated as Total Expenditure minus Total Non-Debt Receipts.
21ID: GK-ECON-00249
hardBudget & Fiscal Policy
What is 'Effective Revenue Deficit' in Union Budget analysis, first introduced in the Union Budget 2011-12?
Verified Explanation
Effective Revenue Deficit is defined as Revenue Deficit minus grants given by the Centre to States and local bodies that are earmarked for the creation of capital assets.
22ID: GK-ECON-00317
easyBudget & Fiscal Policy
What is Primary Deficit calculated as in the Government of India's Union Budget?
Verified Explanation
Primary Deficit = Fiscal Deficit - Interest Payments. It reflects the government's borrowing requirement excluding interest obligations on past loans.
23ID: GK-ECON-00374
mediumBudget & Fiscal Policy
The Fiscal Responsibility and Budget Management (FRBM) Act, aimed at institutionalizing financial discipline and reducing fiscal deficit, was enacted in which year?
Verified Explanation
The FRBM Act was enacted in August 2003 to establish financial discipline, reduce fiscal deficit, eliminate revenue deficit, and ensure macroeconomic stability.
24ID: GK-ECON-00388
mediumBudget & Fiscal Policy
The 'Primary Deficit' in the Union Budget is calculated by deducting which item from the Fiscal Deficit?
Verified Explanation
Primary Deficit = Fiscal Deficit - Interest Payments. It indicates the government's borrowing requirement excluding legacy interest obligations.
25ID: GK-ECON-00480
easyBudget & Fiscal Policy
The landmark Fiscal Responsibility and Budget Management (FRBM) Act was enacted in which year to institutionalize fiscal discipline?
Verified Explanation
The FRBM Act was enacted in August 2003 to establish financial discipline, reduce fiscal deficit, and eliminate revenue deficit.