Explanation: National income – The sum total of incomes earned by the citizens of a country during a given period, over a year.

Explanation: Export plus import expenditure. National Income : Sum total of incomes earned by the citizens of that country during a given period, over a year.

Explanation: Escheat. Felony – Felonies are the most serious offences that a person or corporation can commit against another. Moot – Unsettled, open to argument or debatable. Lien – A legal claim or legal right which is made against the assets that are held as collaterals for satisfying a debt.

Explanation: Stabilisation policy seeks to limit erratic swings in the economy’s total output (measured by the Gross domestic product), Controlling surges in inflation or deflation. Two forms – Expansionary policy – Government moves to lower taxes or increase spending to boost the economy. Contractionary policy is when the Government increases taxes or reduces spending to slow the economy and reduce inflation.

Explanation: Non-plan revenue expenditure : It is accounted for by interest payments, subsidies (mainly on food and fertilisers), wage and salary payments to government employees, grants to States and Union Territories governments, pensions, police, other general services such as tax collection, social services. Non-plan capital expenditure : It includes defence, loans to public enterprises, loans to States, Union Territories and foreign governments.

Explanation: Net indirect taxes: Refers to the difference between indirect taxes and subsidies. NNP (Net national product) – It is the total value of finished goods and services produced by a country’s citizens overseas and domestically, minus depreciation.

Explanation: Taxes reduce the MPC. MPC (marginal propensity to consume) – The proportion of any additional income that is spent. MPS (marginal propensity to save) – The proportion of any additional income that is saved. The sum of MPC and MPS is equal to unity (MPC + MPS = 1). Expenditure multiplier (spending multiplier) – It shows what impact a change in autonomous spending will have on total spending and aggregate demand in the economy.

Explanation: Budgetary Deficit : A situation when the government’s income and tax receipts fail to cover its expenditures. Deficits add to the national debt or federal government debt.

Explanation: Central Board of Indirect Taxes and Customs (erstwhile Central Board of Excise and Customs). It is one of the Boards constituted under the statute the Central Boards of Revenue Act, 1963 and is subordinate to the Department of Revenue under the Ministry of Finance. It deals with the tasks of formulation of policy concerning levy and collection of customs, central excise duties, Central Goods & Services Tax (CGST) and Integrated GST (IGST).

Explanation: Redistribution of income and wealth. Article 112 – deals with the Annual financial statement (Union Budget). Functions : Redistribution of resources. Ensuring fair distribution of income. Stabilising the economy during recession or inflation. Employment opportunities. Management of public enterprises.

Explanation: The US. Zero based budgeting (ZBB): A method of budgeting in which all expenses are evaluated each time a Budget is made and expenses must be justified for each new period. It was introduced by Peter Pyhrr in 1970’s. In India, the ZBB was introduced in the department of science and technology in 1983, and adopted by the Indian Government in 1986. It was promoted during the Seventh Five-Year Plan. In India, Maharashtra is the first state to implement Zero-based budgeting.

Explanation: Gross national product (GNP): The value of all finished goods and services produced by a country’s citizens, both domestically and abroad. GNP = GDP + Net factor income from abroad.

Explanation: i-d, ii-c, iii-a, iv-b. Tax revenue – The revenues collected from taxes on income and profits, social security contributions, taxes levied on goods and services, payroll taxes, taxes on the ownership and transfer of property, and other taxes.

Explanation: Wages in Cash. Operating Surplus: concept used in national accounts statistics which refers to the measure of surplus accruing from production of the output before deducting property income from it like land, rent, and interest. It is a component of value added and gross domestic product.

Explanation: Net indirect taxes. Factor cost – The total cost of all the factors of production in manufacturing a good, which does not account for the subsidies received and taxes paid.

Explanation: Real GDP = 𝑁𝑜𝑚𝑖𝑛𝑎𝑙 𝐺𝐷𝑃 × 100 𝑃𝑟𝑖𝑐𝑒 𝐼𝑛𝑑𝑒𝑥 Given, Real GDP = 500 and Price index = 150 Nominal GDP = 𝑅𝑒𝑎𝑙 𝐺𝐷𝑃 × 𝑃𝑟𝑖𝑐𝑒 𝐼𝑛𝑑𝑒𝑥 100 = = 750. 500 × 150 100

Explanation: Only B. Capital expenditure : Expenditure that either creates an asset or reduces the liability of the government. Example : Purchases of property, equipment, land, computers, furniture, and software.

Explanation: Expenditure. This method adds up Consumer spending, Investment, Government expenditure, and Net exports. Formula (Expenditure method for national income): C + I + G + (X – M), where C = Consumer spending, I = Investment, G = Government spending, X = Exports and M = Imports.

Explanation: 2005-06. India introduced Gender-Responsive Budgeting (GRB) to design public spending in a way that ensures that the benefits accrue as much to the country’s women as they do to the men.

Explanation: Tobacco and tobacco products. GST (Goods and Services Tax) : Implemented – 1st July 2017. Amendment – 101st Amendment Act, 2016. Article – 279 A. The primary GST slabs for any regular taxpayers are presently pegged at 0% (nil-rated), 5%, 12%, 18% & 28%. However, petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead are taxed separately by the individual state governments.

Explanation: April 1, March 31. Financial year (Fiscal Year) – It is the year in which the income is earned. Assessment Year – The 12 month-period that comes right after the financial year. Fiscal year of other Countries – Austria (1st january to 31 st December), Bangladesh (1st July to 30th June), Canada (1st April to 31st march).

Explanation: NNP at Fc – It is the value of NNP when the value of goods and services is taken at the production cost. Net National Product (NNP) – It is the total value of finished goods and services produced by a country’s citizens overseas and domestically, minus depreciation. NNP = GNP – Depreciation.

Explanation: Adjustments for congestion of urban life. Net Economic Welfare (NEW): It is a broader concept than Gross National Product (GNP) to measure economic welfare. NEW = GNP + Value of Housewives Services + Value of leisure – Expenditure on defence – Cost of Environment Degradation.

Explanation: Revenue deficit refers to the excess of revenue expenditure over revenue income in a financial year. Budget Deficit = Total Expenditures by the government – Total Income of the government.

Explanation: Only A. An externality is a positive or negative outcome of a given economic activity that affects a third party that is not directly related to that activity.

Explanation: 2015. The concept of GVA at basic prices follows from the United Nations System of National Accounts (SNA) introduced in 1993 and carried forward in an identical fashion in SNA 2008 as a part of revision of compilation and classification systems.

Explanation: Income Tax. It is a type of tax governments impose on income generated by businesses and individuals within their jurisdiction.

Explanation: (Nominal GDP / Real GDP) × 100.

Explanation: 2015-16. NIIF (National Investment and Infrastructure Fund) is a government-backed entity established to provide long-term capital to the country’s infrastructure sector. Headquarter – Mumbai. The Budget Division of the Department of Economic Affairs in the Finance Ministry is the nodal body responsible for preparing the Budget.

Explanation: Estimated; estimated. Budget {Annual Financial Statement (Article 112)} – A statement of the estimated receipts and expenditure of the Government in a financial year. It contains Estimates of revenue and capital receipts, ways and means to raise the revenue, details of the actual receipts and expenditure of the closing financial year with reasons for any deficit or surplus in that year, the economic and financial policy of the coming year (taxation proposals, prospects of revenue, spending programme and introduction of new schemes).

Explanation: Revenue Receipts – Do not have a direct impact on the assets and liabilities. Tax Revenues Receipts consist of direct and indirect taxes of the central government. Non-Tax Revenue Receipts consist of interest receipts on account of loans given by central government, dividend and profits on investments made by the central government (i.e., PSUs), fees and fines and other receipts for services rendered by the government like passport fees etc. Cash grants-in-aid from foreign countries and international organisations are also part of the non-tax revenue

Explanation: Pension. It is a kind of retirement income that one planned throughout the life to ensure an income source. Factor payments – It refers to the various types of income earned by individuals or businesses as compensation for supplying the factors of production. It includes : Prices for raw materials, Rent for land or buildings. Wages and salaries for labour, Interest and dividends for the use of financial capital and Profit for entrepreneurship.

Explanation: Gross value added (GVA) – A significant macroeconomic indicator that measures the value of goods and services produced in an economy, after deducting the cost of inputs and raw materials used in the production process. Gross Value Added = GDP + subsidies on products – taxes on products.

Explanation: Real GDP (Gross Domestic Product). It measures the quantities of goods produced in different years using the prices from the same base year to adjust inflation. India’s base year is 2011-12. Real GDP = (Nominal GDP/GDP Deflator) × 100.

Explanation: Excise taxes. Custom duties – It is a tax collected on imports and exports by the customs authorities of a country. Anti – dumping duty is a tariff imposed on imports manufactured in foreign countries that are priced below the fair market value of similar goods in the domestic market.

Explanation: Both I and II. Paper tax – It is simply a form where taxpayers declare their taxable income, deductions, and tax payments. Wealth tax and gift tax are referred to as “paper taxes”.

Explanation: Positive. Gross primary Deficit = Gross fiscal Deficit – Net interest liabilities. Deficit – The amount by which the spending done in a budget surpasses the earnings.

Explanation: 2010. Direct tax: It is directly paid to the authority imposing the tax. It is levied on taxable income earned by individuals and corporate entities. Example – Income tax, real property tax, personal property tax, and taxes on assets, corporation tax, gift tax, inheritance tax.

Explanation: Budget Set. Budget line – The combination of goods that can be afforded with one’s current income. Budget constraint – The total amount of items one can afford within a current budget. Budget variance – Difference between the budgeted or baseline amount of expense or revenue, and the actual amount.

Explanation: Both I and II. National Income = GDP + Foreign Production by National Residents – Domestic Production by Non-National Residents.

Explanation: Depreciated. Currency Depreciation – The loss of value of a country’s currency with respect to one or more foreign reference currencies.

Explanation: Banking method. National income of a country means the sum total of incomes earned by the citizens of that country during a given period, over a year.

Explanation: Gross fiscal deficit and Net interest liabilities. A primary deficit is the amount of money that the government requires to borrow from the interest payments on the formerly borrowed loans.

Explanation: 2005-06. Gender budgeting deals with gender-sensitive formulation of legislation, programs and schemes, allocation of resources, implementation and execution, Audit and impact assessment of programs and schemes, and follow-up corrective action to address gender disparities.

Explanation: Nominal gross domestic product (GDP) is the value of all the final goods and services at current market prices.

Explanation: The principle of National Income. Macroeconomics – It explains how the economy as a whole operates and how aggregate demand and supply are used to generate the level of national income and employment.

Explanation: Only II . Redistribution of income – To close the income gap between rich and poor, several budgetary schemes are launched from the government’s end. Fiscal instruments like subsidies, taxations, etc. are effectively used to achieve this goal.

Explanation: National Statistical Office. The National Sample Survey Office (NSSO, founded in 1950) is merged with the Central Statistical Office (CSO, founded in 1951) under the Ministry of Statistics and Programme Implementation to form the National Statistical Office (NSO) in 2019.

Explanation: Proportional income tax (flat tax) levies the same percentage tax to everyone regardless of income. Professional tax is a tax that is levied by a state government on all individuals who earn a living through any medium. A capital gains tax is the tax on profits realised on the sale of a non-inventory asset.

Explanation: PC Mahalanobis (chairman of Indian Statistical Institute). The National Income Committee (NIC) (1949) calculated the National Income of India and compiled statistics. Members of NIC : VKRV Rao and DR Gadgil.