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 meant by “monetary policy”?
View QuestionWhich of the following is a direct tax?
View QuestionWhat is “inflation targeting”?
View QuestionWhich of the following sectors contributes the most to India’s GDP?
View QuestionWhich of the following is an example of a public sector undertaking (PSU) in India?
View QuestionWhat is the “law of diminishing marginal utility”?
View QuestionWhat is “open market operations” (OMO)?
View QuestionWhich of the following is NOT a component of Aggregate Demand?
View QuestionWhat is the objective of the Goods and Services Tax (GST)?
View QuestionWhich of the following is considered a public good?
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