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.
Which of the following causes demand-pull inflation?
View QuestionWhat is “fiscal stimulus”?
View QuestionWhich of the following measures is most effective in controlling inflation?
View QuestionWhich of the following factors is NOT included in the calculation of Human Development Index (HDI)?
View QuestionWhat is “open market operations” (OMO)?
View QuestionWhich organization is responsible for estimating India’s Gross Domestic Product (GDP)?
View QuestionWhat does the “Phillips Curve” show?
View QuestionWhich of the following best describes “capital formation”?
View QuestionWhich of the following is NOT part of the World Bank Group?
View QuestionWhat is the term for the ability of an economy to produce more output from the same inputs?
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