Economy & Business MCQs

11.

What does 'fiscal space' refer to in this context?

A Limited ability of the government to spend

B The flexibility of the government to increase spending or cut taxes

C The amount of debt the government can accumulate

D The total revenue collected by the government

12.

What is the projected trend for the fiscal deficit in the subsequent fiscal year?

A To increase significantly

B To remain the same

C To be even lower

D To become a surplus

13.

The government's focus on fiscal prudence indicates a commitment to:

A Increasing the national debt

B Sustainable levels of deficit and debt

C Uncontrolled government spending

D Reducing investment in infrastructure

14.

What does 'fiscal consolidation' refer to?

A Increasing government spending without limit

B Reducing the government's budget deficit and debt

C Increasing taxes significantly

D Borrowing excessively

15.

A reduced fiscal deficit can potentially lead to:

A A downgrade in sovereign credit rating

B A better sovereign credit rating

C Increased borrowing costs for the government

D Reduced fiscal space

16.

An improved fiscal position is expected to enhance:

A Government debt levels

B Macroeconomic stability

C Inflationary pressures

D Currency depreciation

17.

The government has exercised discipline in its spending, prioritizing:

A Revenue expenditure over capital expenditure

B Capital expenditure for infrastructure development

C Non-essential government projects

D Increased administrative costs

18.

What has played a crucial role in the stronger-than-expected revenue growth?

A Economic slowdown

B Buoyant performance of the economy and improved tax compliance

C Decreased foreign investment

D Reduced domestic consumption

19.

The reduction in fiscal deficit is attributed to:

A Increased government borrowing and reduced tax revenue

B Prudent fiscal management, robust tax revenue, and controlled expenditure

C Higher revenue expenditure and lower capital expenditure

D Economic slowdown and decreased tax compliance

20.

What was India's fiscal deficit as a percentage of GDP for the fiscal year 2025-26?

A 4.5%

B 5.1%

C 5.5%

D 6.0%

Economy & Business MCQs - 2026-04-01