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 does the Gini Coefficient measure?
View QuestionWhich of the following is a feature of monopolistic competition?
View QuestionWhat does the term “elasticity of demand” measure?
View QuestionWhich of the following best describes “capital formation”?
View QuestionWhat is the objective of the Goods and Services Tax (GST)?
View QuestionWhich of the following is NOT an example of an indirect tax?
View QuestionWhich of the following statements best defines Gross Domestic Product (GDP)?
View QuestionWhat is the primary purpose of Special Economic Zones (SEZs)?
View QuestionWhich organization publishes the Human Development Index (HDI)?
View QuestionWhat is meant by “credit rating”?
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