taxes types, methods & budgeting process section 4 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 16

Consider the following statements regarding the "Public Finance Management System (PFMS)":

1. It comes under the office of Controller General of Accounts, Ministry of Finance
2. It comes under the Department of Expenditure, Ministry of Finance
3. It is an end to end online solution for processing payments, reconciliation and reporting of central schemes
4. It tracks fund utilization up to the last mile for central schemes

a) (ii) & (iii) only

b) (i), (iii) & (iv) only

c) (i) & (iii) only

d) (ii), (iii) & (iv) only

Question : 17

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

a) (ii) & (iii) only

b) (i) only

c) (i) & (iii) only

d) (i), (ii), (iii) & (iv) only

Question : 18 [BPSC (Pre) 2005]

From which of the tax following direct taxes gives maximum net revenue to the Government?

a) Income Tax

b) Wealth Tax

c) Corporation Tax

d) Gift Tax

Question : 19 [CDS-2013-II]

In India, the price of petroleum products has been deregulated mainly to

a) discourage the demand for private vehicles

b) reduce the burden of subsidies given to the oil companies

c) discourage the exploration of oil reserves in the country

d) curb the use of black money in the economy

Question : 20

Consider the following statements regarding IGST:

1. It is levied by the Centre on interstate supply of goods
2. The IGST rate is equal to CGST plus the SGST/UTGST rate
3. The tax revenue is shared equally among the Centre and the consuming State/UT

a) (ii) only

b) (i) & (iii) only

c) (i) only

d) All of the above