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 “open market operations” (OMO)?
View QuestionWhat is the meaning of "fiscal deficit"?
View QuestionWhat is the objective of the Goods and Services Tax (GST)?
View QuestionWhat is the significance of “Purchasing Power Parity” (PPP)?
View QuestionWhich of the following statements best defines Gross Domestic Product (GDP)?
View QuestionWhich is the largest source of tax revenue for the Government of India?
View QuestionWhat is the concept of “invisible hand” associated with?
View QuestionWhich term refers to the decrease in the value of a currency relative to foreign currencies?
View QuestionWhich of the following causes demand-pull inflation?
View QuestionWhat is “currency devaluation”?
View Question