Q1. In recent years, the capital outlays for the defence service have been
Correct Answer: A
Modernization requirements have led to a steady increase in the capital expenditure part of the defence budget.
Q2. Corporate Tax is imposed by
Correct Answer: C
Corporate tax is a direct tax levied by the Union Government on the profits of domestic and foreign companies.
Q3. Which is the most important source of income for Government of India? (Historical)
Correct Answer: D
For a long time, Union Excise Duties were the single largest source of revenue for the Centre.
Q4. The minimum effect of direct taxes is on
Correct Answer: A
Direct taxes (like Income Tax) affect disposable income, but have a less immediate impact on the market prices of essential food items compared to indirect taxes.
Q5. The Fiscal Policy of India is formulated by
Correct Answer: C
The Ministry of Finance manages fiscal policy (tax/spend), while RBI manages monetary policy (interest/money supply).
Q6. Which of the following is not viewed as a national debt?
Correct Answer: C
National Saving Certificates are considered an investment by the public and a liability/debt for the government.
Q7. Excise duty is a tax levied on the
Correct Answer: C
It is an indirect tax levied on the manufacture or production of goods within the country.
