Fiscal Policy

12 Questions
  1. 1
    Which one of the following best describes the 'Crowding Out Effect' in the context of fiscal policy?
    UPSC CSE I - 2026
  2. 2
    Which among the following steps is most likely to be taken at the time of an economic recession?
    UPSC CSE I - 2021
  3. 3

    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:

    UPSC CSE I - 2020
  4. 4

    In India, which of the following can be considered as public investment in agriculture?

    1. Fixing Minimum Support Price for agriculture produce of all crops
    2. Computerization of Primary Agriculture Credit Societies
    3. Social Capital development
    4. Free electricity supply to farmers
    5. Waiver of agriculture loans by the banking system
    6. Setting up of cold storage facilities by the governments

    Select the correct answer using the code given below:

    UPSC CSE I - 2020
  5. 5
    The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if any) paid to the farmers plus
    UPSC CSE I - 2019
  6. 6
    Consider the following statements :
    1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.
    2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.
    3. As per the Constitution of India, it is mandatory for a State to take the Central Government's consent for raising any loan if the former owes any outstanding liabilities to the latter.
    Which of the statements given above is/are correct ?
    UPSC CSE I - 2018
  7. 7
    There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit?
    1. Reducing revenue expenditure
    2. Introducing new welfare schemes
    3. Rationalizing subsidies
    4. Expanding industries
    Select the correct answer using the code given below.
    UPSC CSE I - 2015
  8. 8
    A decrease in tax to GDP ratio of a country indicates which of the following?
    1. Slowing economic growth rate
    2. Less equitable distribution of national income
    Select the correct answer using the code given below.
    UPSC CSE I - 2015
  9. 9
    Which one of the following statements appropriately describes the "fiscal stimulus" ?
    UPSC CSE I - 2011
  10. 10

    Consider the following actions by the Government:

    1. Cutting the tax rates
    2. Increasing the government spending
    3. Abolishing the subsidies

    In the context of economic recession, which of the above actions can be considered a part of the ‘fiscal stimulus’ package?

    UPSC CSE I - 2010
  11. 11

    Consider the following statements:

    In India, stamp duties on financial transactions are:

    1. levied and collected by the State Government
    2. appropriated by the Union Government

    Which of these statements is/are correct?

    UPSC CSE I - 2003
  12. 12

    A redistribution of income in a country can be best brought about through:

    UPSC CSE I - 1996