Economics Government Budget and the Economy MCQ Question Answers for CUET 2026 

1. Non-plan capital expenditure covers which of the following Service?
a.
b.
c.
d.

2. Capital budget consists of:
a.
b.
c.
d.

3. Which expenditure is committed and can’t be reduced?
a.
b.
c.
d.

4. _________= Net borrowing at home + Borrowing from RBI + Borrowing from abroad
a.
b.
c.
d.

5. The intervention of the government whether to expand demand or reduce it constitutes the
a.
b.
c.
d.

6. Which of the following is the capital expenditure?
a.
b.
c.
d.

7. Government deficit can be reduced by an increase in ______or reduction in _________.
a.
b.
c.
d.

8. The amount collected by the government as taxes and duties is known as _______
a.
b.
c.
d.

9. Full form of SLR
a.
b.
c.
d.

10. What is the annual statement of the government’s fiscal revenue and fiscal expenditure known as?
a.
b.
c.
d.

11. __________consist of interest payments minus interest receipts by the government on net domestic lending
a.
b.
c.
d.

12. What refers to the excess of government’s revenue expenditure over revenue receipts?
a.
b.
c.
d.

13. Borrowing in the government budget is referred as:
a.
b.
c.
d.

14. Examples of such goods are national defence, roads, government administration etc. which are referred to as
a.
b.
c.
d.

15. When government spends more than it collects by way of revenue, it incurs __
a.
b.
c.
d.

16. How many types of revenue receipts are there?
a.
b.
c.
d.

17. An economy in which there is both the private sector and the Government is known as a
a.
b.
c.
d.

18. Which of the following is a correct measure of primary deficit?
a.
b.
c.
d.

19. Which is a component of Budget?
a.
b.
c.
d.

20. Budgetary deficits must be financed by
a.
b.
c.
d.


 

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