Interim Budget 2024-2025

For Prelims: Capital expenditure, Fiscal deficit, Direct & Indirect taxes, Lakhpati Didis, NaMo Bharat, Nano-DAP, Cervical Cancer Vaccination, Rooftop solarization, PM-SVANidhi, Mudra Yojana, Fasal Bima Yojana, Coal gasification, Ayushman Bharat, Oilseeds, Multidimensional poverty, Order of Distribution of Government Investment Across Various Sectors.

For Mains: Major Development Plans in Interim Budget 2024-2025

UPSC Civil Services Examination, Previous Year Question:

Prelims:

Q. What is the difference between “vote-on-account” and “Interim Budget”? (2011)

1. The provision of a “vote-on-account” is used by a regular Government while an “interim budget” is a provision used by a caretaker Government.
2. A “vote-on-account” only deals with the expenditure in Government’s budget, while an “interim budget” includes both expenditures and receipts.

Which of the statements given above is/are correct?

(a) 1 only 
(b) 2 only 
(c) Both 1 and 2 
(d) Neither 1 nor 2

Ans: (b)

Q. When the annual Union Budget is not passed by the Lok Sabha, (2011)

(a) the Budget is modified and presented again
(b) the Budget is referred to the Rajya Sabha for suggestions
(c) the Union Finance Minister is asked to resign
(d) the Prime Minister submits the resignation of Council of Ministers

Ans: (d)

Q. In the Union Budget 2011-12, a full exemption from the basic customs duty was extended to the bio-based asphalt (bioasphalt). What is the importance of this material? (2011)

1. Unlike traditional asphalt, bio-asphalt is not based on fossil fuels.
2. Bioasphalt can be made from non-renewable resources.
3. Bioasphalt can be made from organic waste materials.
4. It is eco-friendly to use bioasphalt for surfacing of the roads.

Which of the statements given above are correct?

(a) 1, 2 and 3 only
(b) 1, 3 and 4 only 
(c) 2 and 4 only 
(d) 1, 2, 3 and 4

Ans: (b)

Q. Along with the Budget, the Finance Minister also places other documents before the Parliament which include ‘The Macro Economic Framework Statement’. The aforesaid document is presented because this is mandated by (2020)

(a) Long standing parliamentary convention
(b) Article 112 and Article 110(1) of the Constitution of India
(c) Article 113 of the Constitution of India
(d) Provisions of the Fiscal Responsibility and Budget Management Act, 2003

Ans: (d)

Q. With reference to the Union Government, consider the following statements: (2015)

1. The Department of Revenue is responsible for the preparation of the Union Budget that is presented to the Parliament.
2. No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India.
3. All the disbursements made from Public Account also need the authorization from the Parliament of India.

Which of the statements given above is/are correct?

(a) 1 and 2 only
(b) 2 and 3 only 
(c) 2 only
(d) 1, 2 and 3

Ans: (c)

Q. Which of the following are the methods of Parliamentary control over public finance in India? (2012)

1. Placing Annual Financial Statement before the Parliament
2. Withdrawal of moneys from Consolidated Fund of India only after passing the Appropriation Bill
3. Provisions of supplementary grants and vote-on account
4. A periodic or at least a mid-year review of programme of the Government against macroeconomic forecasts and expenditure by a Parliamentary Budget Office
5. Introducing Finance Bill in the Parliament

Select the correct answer using the codes given below:

(a) 1, 2, 3 and 5 only
(b) 1, 2 and 4 only 
(c) 3, 4 and 5 only 
(d) 1, 2, 3, 4 and 5

Ans: (a)

Q. Which one of the following is responsible for the preparation and presentation of Union Budget to the Parliament? (2010)

(a) Department of Revenue
(b) Department of Economic Affairs
(c) Department of Financial Services
(d) Department of Expenditure

Ans: (b)

Q. There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit? (2016)

1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalizing subsidies
4. Reducing import duty

Select the correct answer using the code given below:

(a) 1 only
(b) 2 and 3 only 
(c) 1 and 3 only
(d) 1, 2, 3 and 4

Ans: (c)

Mains:

Q. Distinguish between Capital Budget and Revenue Budget. Explain the components of both these Budgets. (2021)

Q, The public expenditure management is a challenge to the Government of India in the context of budget-making during the post-liberalization period. (2019)

Q. How have the recommendations of the 14th Finance Commission of India enabled the States to improve their fiscal position? (2021)

Q. What were the reasons for the introduction of Fiscal Responsibility and Budget Management (FRBM) Act, 2003? Discuss critically its salient features and their effectiveness. (2013)