Union Budget 2024: Multiple Choice Questions (MCQs) Test Your Knowledge!

Embark on a journey of fiscal exploration with our compilation, “Union Budget 2024: Multiple Choice Questions (MCQs) Test Your Knowledge!” This guide is like a detailed map, encouraging you to explore the details of the upcoming Union Budget. Designed as an engaging quiz, it aims to challenge and enhance your understanding of the economic landscape, policies, and financial strategies set to unfold in the year 2024. As you navigate through these thought-provoking MCQs, you’ll not only test your knowledge but also gain valuable insights into the economic decisions shaping the nation. So, gear up for an enlightening experience, and let the quiz unravel the complexities of the Union Budget 2024 for you!

Nirmala Sitharaman presented the Union Budget in the year 2024. At what time did she do so?

a. 5th time

b. 7th time

c. 6th time

d. 4th time

Ans. c. 6th time👈

What is the percentage increase in the Defence Outlay as announced in Budget 2024?

A) 5.5%
B) 8.9%
C) 11.1%
D) 14.5%

Ans: C) 11.1%

What is the revised estimate of the fiscal deficit as a percentage of GDP in Budget 2024?

A) 4.2%
B) 5.8%
C) 6.5%
D) 7.1%

Ans: B) 5.8%

How does the revised fiscal deficit in Budget 2024 compare to the previous estimate?

A) Decreased by 1.3%
B) Increased by 0.5%
C) Remained unchanged
D) Increased by 1.8%

Ans: B) Increased by 0.5%

What is the main challenge mentioned in the statement regarding Compressed Biogas (CBG) blending mandate?

A) Lack of government support for CBG production.

B) Difficulty in enforcing the blending mandate.

C) Limited availability and transport challenges for CBG.

D) Insufficient awareness about the benefits of CBG blending.

Ans: C) Limited availability and transport challenges for CBG.

What is the significance of the 11.1% higher capex budgeted for infrastructure, despite being lower than the run rate in previous years?

A) It indicates a decrease in overall infrastructure spending.

B) It suggests a shift towards more efficient and targeted infrastructure investments.

C) It implies an overspending trend in the infrastructure sector.

D) It reflects a lack of focus on infrastructure development.

Ans: B) It suggests a shift towards more efficient and targeted infrastructure investments.

Why does the statement suggest that the private sector will have to step in for maintaining growth momentum in the context of the 11.1% higher capex budgeted for infrastructure?

A) The government lacks the funds to support infrastructure projects.

B) The capex is insufficient to meet the growing demands of infrastructure development.

C) The private sector is traditionally responsible for funding infrastructure projects.

D) The higher capex is not aligned with the overall economic growth strategy.

Ans: B) The capex is insufficient to meet the growing demands of infrastructure development.

How can investments in preventing foot and mouth diseases contribute to improving India’s milch animal yield?

A) By reducing the number of milch animals.

B) By increasing the global average milch animal yield.

C) By enhancing the quality of feed for milch animals.

D) By addressing a key factor limiting milch animal productivity.

Ans: D) By addressing a key factor limiting milch animal productivity.

The Union Budget is presented in which house of the Parliament?

a. Lok Sabha 

b. Rajya Sabha

c. Both

d. None

Ans: Lok Sabha

What of the following period is covered in the Union Budget?

a. April to March

b. January to December

c. July to June

d. October to September

Ans: a. April to March

Which document outlines the estimated receipts and expenditures of the government for a particular fiscal year?

a. Economic Survey

b. Annual Financial Statement 

c. Finance Bill

d. Monetary Policy

Ans: b. Annual Financial Statement

The Union Budget of India is also known as:

a. Fiscal Statement

b. Economic Plan

c. Annual Financial Plan

d. None of the above

Ans: c. Annual Financial Plan

What is the primary source of revenue for the Indian government according to the Union Budget?

a. Income Tax

b. Goods and Services Tax (GST) 

c. Corporate Tax

d. Customs Duty

Ans: b. Goods and Services Tax (GST)

In the Union Budget, what is the term used for the difference between total revenue and total expenditure?

a. Fiscal Deficit 

b. Revenue Deficit

c. Budget Deficit

d. Economic Deficit

Ans: a. Fiscal Deficit

Which tax was introduced in the Union Budget 2020-21 for a simplified personal income tax structure?

a. Goods and Services Tax (GST)

b. Direct Tax Code (DTC) 

c. Dividend Distribution Tax (DDT)

d. Agricultural Infrastructure and Development Cess (AIDC)

Ans: b. Direct Tax Code (DTC) 

The concept of Zero-Based Budgeting was introduced in which Union Budget?

a. 2018-19

b. 2017-18

c. 2016-17

d. 2015-16

Ans: 2016-17

The Finance Minister’s Budget speech usually begins with which traditional Indian salutation?

a. Vande Mataram

b. Jai Hind

c. Om Shanti

d. Satyameva Jayate 

Ans: d. Satyameva Jayate

What is the term used for the government’s plan for its revenue and expenditure for the upcoming fiscal year?

a. Fiscal Policy

b. Annual Financial Plan

c. Budget Estimate

d. Economic Survey

Ans: c. Budget Estimate

In which year was the first Union Budget of independent India presented?

a. 1945

b. 1947

c. 1950

d. 1952

Ans: c. 1950

Who was the first Finance Minister of independent India to present the Union Budget?

a. Morarji Desai

b. R. K. Shanmukham Chetty

c. John Mathai

d. C. D. Deshmukh

Ans: b. R. K. Shanmukham Chetty

The term “Interim Budget” is used when:

a. A new government is formed

b. The government is facing financial constraints

c. A full budget is presented during an election year

d. The budget is presented for a short period before a new fiscal year

Ans: d. The budget is presented for a short period before a new fiscal year

Who was the first woman Finance Minister of India to present the Union Budget?

a. Indira Gandhi

b. Nirmala Sitharaman

c. Arun Jaitley

d. Pranab Mukherjee

Ans: b. Nirmala Sitharaman

The Planning Commission was a key institution related to economic planning. In which year was it dissolved, and the NITI Aayog was formed?

a. 2012

b. 2014

c. 2016

d. 2018

Ans: b. 2014

What is the significance of the “Rolling Budget”?

a. It was introduced in the 1980s for long-term economic planning

b. It allows for adjustments and updates throughout the fiscal year

c. It was the first budget presented after economic liberalization in 1991

d. It focuses on reducing the fiscal deficit

Ans: b. It allows for adjustments and updates throughout the fiscal year

Which Finance Minister presented the “Dream Budget” in 1997, known for introducing significant economic reforms?

a. P. Chidambaram

b. Manmohan Singh

c. Yashwant Sinha

d. Jaswant Singh

Ans: a. P. Chidambaram

The Goods and Services Tax (GST), a major tax reform, was introduced in the Union Budget of which year?

a. 2015-16

b. 2016-17

c. 2017-18

d. 2018-19

Ans: c. 2017-18

Which Finance Minister presented the “Budget for New India” in 2019, focusing on the 10-dimensional vision for the country?

a. Arun Jaitley

b. Piyush Goyal

c. Nirmala Sitharaman

d. Rajnath Singh

Ans: c. Nirmala Sitharaman

What was the historic change introduced in the Union Budget of 1991 that transformed India’s economic policies?

a. Introduction of Goods and Services Tax (GST)

b. Abolition of Planning Commission

c. LPG (Liberalization, Privatization, Globalization) reforms

d. Rollback of the Income Tax

Ans: c. LPG (Liberalization, Privatization, Globalization) reforms

Who presented the “Black Budget” in 1957, known for proposing heavy taxes and increased public spending?

a. Morarji Desai

b. T.T. Krishnamachari

c. C.D. Deshmukh

d. Jawaharlal Nehru

Ans: b. T.T. Krishnamachari

The Union Budget of 1973-74 is famous for introducing which new tax in India?

a. Value Added Tax (VAT)

b. Securities Transaction Tax (STT)

c. Minimum Alternate Tax (MAT)

d. Gift Tax

Ans: d. Gift Tax

In 1969, which Finance Minister presented the Union Budget that proposed the nationalization of 14 major Indian banks?

a. Morarji Desai

b. Indira Gandhi

c. Y.B. Chavan

d. C.D. Deshmukh

Ans: b. Indira Gandhi

The 1997 Union Budget introduced the concept of Voluntary Disclosure of Income Scheme (VDIS). What was its primary purpose?

a. Encouraging foreign investments

b. Reducing fiscal deficit

c. Promoting digital payments

d. Declaring undisclosed income and assets

Ans: d. Declaring undisclosed income and assets

Which Finance Minister presented the Union Budget during the period of the Gulf War in 1991?

a. Yashwant Sinha

b. Manmohan Singh

c. Madhu Dandavate

d. P. Chidambaram

Ans: b. Manmohan Singh

The Union Budget of 1968-69 introduced the “Green Revolution” package. Who was the Finance Minister at that time?

a. C.D. Deshmukh

b. Y.B. Chavan

c. Morarji Desai

d. Indira Gandhi

Ans: c. Morarji Desai

Which Union Budget aimed to achieve the target of “One Nation, One Tax” before the actual implementation of GST?

a. 2015-16

b. 2016-17

c. 2017-18

d. 2018-19

Ans: a. 2015-16

In 2000, the Union Budget introduced a tax holiday for software technology parks. Who was the Finance Minister then?

a. Yashwant Sinha

b. Jaswant Singh

c. P. Chidambaram

d. Arun Jaitley

Ans: c. P. Chidambaram

What significant change was introduced in the Union Budget of 1985-86 related to the tax slabs?

a. Introduction of the Minimum Alternate Tax (MAT)

b. Reduction of income tax rates

c. Abolition of Wealth Tax

d. Introduction of the Securities Transaction Tax (STT)

Ans: b. Reduction of income tax rates

Who was the Finance Minister when the Union Budget presented in 1997 proposed the reduction of corporate tax rates?

a. Jaswant Singh

b. Yashwant Sinha

c. P. Chidambaram

d. Manmohan Singh

Ans: c. P. Chidambaram

The Union Budget of 1987-88 introduced a new tax to curb conspicuous consumption. What was it called?

a. Wealth Tax

b. Fringe Benefit Tax (FBT)

c. Gift Tax

d. Commodities Transaction Tax (CTT)

Ans: b. Fringe Benefit Tax (FBT)

Who presented the Union Budget of India during the global economic crisis in 2009?

a. P. Chidambaram

b. Manmohan Singh

c. Pranab Mukherjee

d. Yashwant Sinha

Ans: c. Pranab Mukherjee

In the Union Budget of 1983-84, which new tax was introduced to target luxury spending on non-essential goods?

a. Securities Transaction Tax (STT)

b. Excise Duty

c. Value Added Tax (VAT)

d. Commodities Transaction Tax (CTT)

Ans: d. Commodities Transaction Tax (CTT)

The Union Budget of 2005-06 is notable for introducing which flagship employment generation program?

a. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

b. Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

c. Sarva Shiksha Abhiyan (SSA)

d. National Rural Livelihood Mission (NRLM)

Ans: a. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

Which Finance Minister presented the Union Budget in 1976 during the period of the Emergency?

a. Morarji Desai

b. Indira Gandhi

c. Y.B. Chavan

d. C.D. Deshmukh

Ans: b. Indira Gandhi

The Union Budget of 1996-97 introduced which major tax reform to bring transparency in tax administration?

a. Goods and Services Tax (GST)

b. Fringe Benefit Tax (FBT)

c. Direct Tax Code (DTC)

d. Securities Transaction Tax (STT)

Ans: c. Direct Tax Code (DTC)

The Union Budget of 1982-83 is known for announcing the establishment of which financial institution to support the housing sector?

a. RBI (Reserve Bank of India)

b. LIC Housing Finance Limited

c. National Housing Bank (NHB)

d. Housing Development Finance Corporation (HDFC)

Ans: c. National Housing Bank (NHB)

The Union Budget of 2001-02 introduced a new tax exemption for investments in which financial instrument?

a. Public Provident Fund (PPF)

b. National Pension System (NPS)

c. Equity-Linked Savings Scheme (ELSS)

d. Infrastructure Bonds

Ans: d. Infrastructure Bonds

The Union Budget of 1964-65 presented by T.T. Krishnamachari introduced a new tax on agricultural income. What was it called?

a. Land Revenue Tax

b. Agricultural Income Tax

c. Wealth Tax

d. Estate Duty

Ans: d. Estate Duty

Which Union Budget in the 21st century was presented by the first woman Finance Minister of India?

a. 2000-01

b. 2010-11

c. 2015-16

d. 2019-20

Ans: a. 2000-01

In summary, getting a good grasp of the information in “Union Budget 2024: Multiple Choice Questions (MCQs) Test Your Knowledge!” is extremely helpful for students preparing for competitive exams. The well-designed questions in this guide are like a strong base, giving you a deeper understanding of budget-related topics and economic policies. By using this resource, you not only check how well you understand things but also improve your ability to analyze—something very important for doing well in competitive exams. The knowledge you gain from this guide goes beyond just the Union Budget, providing a complete understanding that’s useful various competitive exams. Take advantage of this chance to improve your preparation, as the valuable insights you get from this resource will surely help you succeed in competitive exams. Best of luck!

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