Answer: D

Explanation:

The concept of zero-based budgeting was accepted in India in 1985-86. Items or programs with previously allocated amounts are not necessarily accommodated in a zero base budget. A new economic basis is prepared for the budget of the current financial year, which is determined on the basis of a critical evaluation of the programs or schemes operated in the previous financial year. Hence, statements 1 and 2 both are correct.

Answer: C

Explanation:

Capital gains tax is a tax levied on gains from the disposal of capital assets. This comes under the category of profit or beneficial income. So, capital gains tax will have to be paid for the year in which the transfer of capital assets takes place. It can be conducted for the short term (for a year or less) or the long term (for more than a year).

It is taxable in both movable and immovable capital assets. Capital assets include land, buildings, house property, vehicles, patents, trademarks, lease rights, machinery, and jewelry. It includes rights of management or control or any other legal right. Hence statement 1 is correct.

Capital gains are not applicable on the inherited property as there is no sale. Capital gain tax comes under the Income Tax Act of 1961. If this property is sold to any person, capital gains tax will be applicable to it. Hence, statement 2 is correct.

Answer: C

Explanation:

Stagflation refers to 'inflationary stagnation'. Stagflation is a paradoxical situation in which inflation is accompanied by stagnation in the economy. In this situation, the economy shows a situation of higher prices and full employment in some sectors. So, on the other hand, the situation of stagnation, i.e. reduction in industrial and agricultural production, excessive unemployment, etc. is visible in the areas. Hence, statement 1 is correct.

As a result of the efforts made to control inflation, the rate of inflation starts decreasing. Prices fall and employment is also adversely affected, this situation is called deflation. In this situation, although the price level falls, it remains above the general price level. Hence, statement 2 is correct.

Answer: D

Explanation:

Revenue deficit is the difference between revenue receipts on both tax and non-tax and revenue expenditure. This deficit only covers current income and current expenses. The government can increase its revenue receipts by raising income tax and selling off properties.

With non-debt, the difference between total expenditure and revenue receipts is the fiscal deficit.

The difference between gross fiscal deficit and net interest liabilities is the primary deficit. Primary deficit refers to the difference between the current year's fiscal deficit and interest payments on previous borrowings. It indicates the borrowing requirements of the government excluding interest. It shows how much of the government's expenditure, other than interest payments, can be met through borrowings.

The difference between the revenue deficit and the grant for the creation of capital assets gives the effective revenue deficit. It was first introduced in the 2011-12 budget.

Hence, option (d) is correct.

Answer: B

Explanation:

The Balance of Payment (BoP) records the final goods, services and assets transactions between the residents of a country with the rest of the world for a specified time period, usually a period of one year. The BoP has two main accounts-the current account and the capital account.

Current Account: The current account records the export and import of goods, trade in services, and transfer payments. It includes trade in goods and services, shipping, banking, gifts, remittances, grants, etc.

Capital Account: The capital account records all international purchases and sales of assets such as money, stocks, bonds, etc. It includes foreign direct investments and loans, commercial borrowings and NRI deposits, changes in the reserve account, etc. Hence, option (b) is correct.