Q. The term ‘Performance Budget’ was coined by
✅ Correct Answer: (D)
first hoover commission of usa
Public Finance MCQs and Notes
Q. The role of the Finance Commission in Central-State fiscal relations has been undermined by
✅ Correct Answer: (C)
the planning commission
Q. Public goods have two criteria, one of which is non-excludability. What does that mean?
✅ Correct Answer: (D)
a and c.
Q. Which of the following occurs when all taxes and other revenues exceed government expenditures for a year?
✅ Correct Answer: (B)
budget surplus
Q. The principle of public expenditure that requires that Government should avoid shortfall of revenue in comparison with its expenditure is termed as
✅ Correct Answer: (B)
canon of surplus
Q. During the process of economic development, the share of public expenditure to Gross Domestic Product tends to expand. This is called:
✅ Correct Answer: (A)
wagner’s law
Q. Tax revenue sharing between the federal and sub-national governments is aimed at correcting which of the following type of imbalances?
✅ Correct Answer: (A)
vertical imbalances
Q. The horizontal fiscal imbalance that arises in a fiscal federation is also called:
✅ Correct Answer: (A)
problem of equalisation
Q. In which of the following type of economy, the revenue from taxation is likely to be the least?
✅ Correct Answer: (D)
socialist economy
Q. The most accepted theory of taxation in modern times:
✅ Correct Answer: (D)
ability theory