Subject: Economics
Book: Comprehensive Indian Economy
Public finance studies government revenue, expenditure, and debt management. The center and states raise funds via taxes, market borrowings, and external loans. Debt sustainability rests on prudent fiscal consolidation—if deficits are high over time, interest payments can crowd out development expenditure. Key metrics include debt-to-GDP ratio and interest coverage. The FRBM Act imposes rules to keep deficits within targets. In exam contexts, be ready to assess how large debt affects inflation, currency stability, and growth. Also highlight the role of zero-based budgeting or outcome budgeting to ensure efficient resource allocation.
What is the meaning of “dumping” in international trade?
View QuestionWhat is the concept of “invisible hand” associated with?
View QuestionWhich of the following is a feature of a command economy?
View QuestionWhat is the meaning of "fiscal deficit"?
View QuestionWhich of the following is NOT an example of an indirect tax?
View QuestionWhat is meant by “credit rating”?
View QuestionWhat is the objective of the Goods and Services Tax (GST)?
View QuestionWhat is meant by “crowding out” in economics?
View QuestionWhich is the largest source of tax revenue for the Government of India?
View QuestionWhat is the primary purpose of Special Economic Zones (SEZs)?
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