UPSC Prelims Practice Questions — Questioning the hype around U.P.’s ‘revenue surplus’

Q1. The computation of a State's revenue surplus or revenue deficit directly involves how many of the following four budgetary heads: revenue receipts, revenue expenditure, capital receipts, and capital outlay?

  • A. One
  • B. Two
  • C. Three
  • D. All four

Q2. According to the CAG's State Finances Report 2024-25, how many States recorded a revenue surplus in FY 2024-25?

  • A. 9
  • B. 13
  • C. 15
  • D. 18

Q3. The State Finances Report 2024-25 that identified Uttar Pradesh's Rs 59,327 crore revenue surplus as the largest among surplus States was brought out by which of the following?

  • A. Comptroller and Auditor General of India
  • B. Reserve Bank of India
  • C. NITI Aayog
  • D. Finance Commission of India

Q4. In the RBI's 'State Finances: A Study of Budgets', the Gross Fiscal Deficit (GFD) of States is defined as:

  • A. The excess of aggregate disbursements over revenue receipts and non-debt capital receipts
  • B. The excess of revenue expenditure over revenue receipts
  • C. The fiscal deficit less interest payments
  • D. The difference between own tax revenue and total expenditure

Q5. As reported in the RBI's study of State budgets, the consolidated Gross Fiscal Deficit that States budgeted for 2024-25 was what percentage of GDP?

  • A. 2.8%
  • B. 3.0%
  • C. 3.2%
  • D. 3.5%

Q6. The independent budget analysis documenting that Uttar Pradesh has under-spent its budgeted expenditure by at least 15% every year since 2019-20 was compiled by which of the following?

  • A. PRS Legislative Research
  • B. Reserve Bank of India
  • C. Comptroller and Auditor General of India
  • D. NITI Aayog

Q7. In the context of State finances, the term 'capital outlay' refers to:

  • A. Expenditure that creates physical or financial assets for the government
  • B. Recurring expenditure on salaries, pensions and subsidies
  • C. Grants-in-aid transferred to local bodies for day-to-day needs
  • D. Interest payments made on the State's outstanding debt

Q8. Which Article of the Constitution of India provides for the office of the Comptroller and Auditor-General of India?

  • A. Article 148
  • B. Article 149
  • C. Article 150
  • D. Article 151

Q9. In the context of State finances, 'Fiscal Responsibility Legislation (FRL)' refers to:

  • A. State laws that impose statutory ceilings on the fiscal and revenue deficits
  • B. Central transfers to States based on the Finance Commission's formula
  • C. The RBI's ways-and-means advances extended to State governments
  • D. The mechanism for compensating States for GST revenue losses