Solved Budget Deficit and Surplus (Budgeting and

Budget Deficit and Surplus MCQs for Competitive Exams

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Topic Notes: Budget Deficit and Surplus

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Budget Deficit and Surplus MCQs in Auditing are useful for candidates who need targeted practice for CSS, PMS, FPSC, PPSC, NTS, entry tests, and other competitive exams in Pakistan. This topic page is designed for quick revision, repeated practice, and exam-focused preparation.

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What is the expected impact of economic growth on the government's fiscal budget position?

The government’s budget position should automatically improve

The government’s budget position should automatically worsen

This will have no effect on the government’s budget position

This will reduce the government’s tax revenue

Report

What is the definition of a budgetary deficit?

Total expenditure is more than total revenue

Current expenditure is more than current revenue

Capital expenditure is more than capital revenue

Total expenditure is more than current revenue

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In a governmental or budgetary context, what does the term 'deficiency' refer to?

Money in a fund

Expenditure authority due to an insufficient appropriation

Expenditure authority due to a cash problem, e.g. reimbursements not received on a timely basis

All of these

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How is the fiscal deficit defined within the context of a government budget?

Revenue deficit plus the net borrowing of the government

Budgetary deficit plus the net borrowing of the government

Capital deficit plus revenue deficit

Primary deficit minus capital deficit

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Which of the following fiscal actions is most likely to result in a government budget surplus?

An increase in exports

An increase in unemployment

A decrease in government spending

A decrease in private sector investment

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What is the primary macroeconomic impact of a significant increase in the government budget deficit?

Reduce injections into the economy

Reduce national income

Move the economy away from full employment

Boost aggregate demand

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What does the Public Sector Net Cash Requirement (PSNCR) represent in an economic context?

A measure of the country’s trade position

A measure of the country’s budget position

A measure of the country’s total debt

A measure of the government’s monetary stance

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Which fiscal concept is derived by subtracting grants for the creation of capital assets from the revenue deficit?

Primary deficit

Net fiscal deficit

Budgetary deficit

Effective revenue deficit

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How is the overall budget deficit of a government typically financed?

External borrowing

Non-bank borrowing domestically

Both A and B

None of these

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What is the term for a situation where a government entity's total revenue from taxes and fees exceeds its total budgeted expenditures?

Improved profits

Traditional budgeting

Budget Surplus

Budget Deficit

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Budget Deficit and Surplus MCQs for Competitive Exams

Budget Deficit and Surplus MCQs for Competitive Exams

Topic Notes: Budget Deficit and Surplus

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