The correct answer is The amount of money that the Government has to borrow

• A budget deficit is an indicator of financial health in which expenditures exceed revenue.
• When referring to accrued federal government deficits, the deficits are referred to as the national debt.
• A budget deficit happens when current expenses exceed the amount of income received through standard operations.
• Certain unanticipated events and policies may cause budget deficits.
• Countries can counter budget deficits by raising taxes and cutting spending.

Disinvestments are a part of Non-debt creating Capital receipts which results in a reduction in government’s assets.

The Union Budget provides information about the expected receivables and payable of the government for a financial year that runs from April 1st to March 31st. ​

Important Points

 The Union Budget is divided into two parts: revenue and capital.

• A receipt is a written confirmation that a valuable item has been transferred from one party to another. 
• Receipts are again divided into two categories.
• They are Revenue Receipts and Capital Receipts.
• Revenues that do not result in a claim against the government are referred to as revenue receipts.
• Profits of Public Sector Undertakings are categorized under revenue receipt as neither creates reduced assets of the Government. 

​Thus, In the Union Budget of India, profits from public sector undertakings are taken under Revenue receipts.

The correct answer is 112.

Key Points

• Article 112 of the Indian Constitution, the Union Budget of a year, also referred to as the annual financial statement, is a statement of the estimated receipts and expenditure of the government for that particular year.
• Union Budget keeps the account of the government's finances for the fiscal year that runs from 1st April to 31st March.
• Union Budget is classified into Revenue Budget and Capital Budget.

Important Points 

• The revenue budget includes the government's revenue receipts and expenditure.
• There are two kinds of revenue receipts - tax and non-tax revenue.
• Revenue expenditure is the expenditure incurred on day to day functioning of the government and on various services offered to citizens.
  • If revenue expenditure exceeds revenue receipts, the government incurs a revenue deficit.
• Capital Budget includes capital receipts and payments of the government.
  • Loans from the public, foreign governments, and RBI form a major part of the government's capital receipts.
  • Capital expenditure is the expenditure on the development of machinery, equipment, building, health facilities, education, ect.
• A fiscal deficit is incurred when the government's total expenditure exceeds its total revenue.

Additional Information

•  Article 109: It states about the Special procedure in case of money bill in the parliament.
• Article 108: It States about the Joint sitting of both the houses in certain cases in the parliament.
• Article 111: It States about the Assent to bills in the parliament.

Statement 1 is incorrect as it is a capital receipt of the government and not revenue receipt. Any receipts which tend to reduces the government assets or increases government liability comes under capital receipts.

The correct answer is 6.8%.

Key Points

• Revenue deficit is targeted at 5.1% of GDP, and fiscal deficit is targeted at 6.8% of GDP in 2021-22. 
• The target for the primary deficit (which is fiscal deficit excluding interest payments) is 3.1% of GDP. 
• In 2020-21, as per the revised estimate, the revenue deficit is 7.5% of GDP, and the fiscal deficit is 9.5% of GDP.

Important Points

• Total Expenditure: The government is estimated to spend Rs 34,83,236 crore during 2021-22 which is an annual increase of 14% over 2019-20.  Out of the total expenditure, revenue expenditure is estimated to be Rs 29,29,000 crore (12% annual increase over 2019-20) and capital expenditure is estimated to be Rs 5,54,236 crore (29% annual increase over 2019-20).
• Total Receipts: The government receipts (excluding borrowings) are estimated to be Rs 19,76,424 crore, an annual increase of 6% over 2019-20.  Borrowings are estimated at Rs 15,06,812 crore (27% annual increase over 2019-20).  
• Transfer to states: The central government will transfer Rs 13,88,502 crore to states and union territories in 2021-22 (an annual increase of 10% over 2019-20).  This includes devolution of (i) Rs 6,65,563 crore to states, out of the centre’s share of taxes (an increase of 1%), and (ii) Rs 7,22,939 crore in the form of grants and loans (an increase of 21%).  In 2020-21, while devolution to states fell by 30% at the revised stage (compared to budget estimates), grants were higher by 26%.
• GDP growth estimate: The nominal GDP is estimated to grow at a rate of 14.4% in 2021-22.  In Budget 2020-21, GDP was estimated to grow at 10%, which was revised to -13%.

The correct answer is 2017.

Key Points

• Goods and Services Tax:​
  • The Goods and Services Tax (GST) was introduced in India on 1st July 2017.
  • The Government of India introduced a Goods and Services Tax (GST) to promote India's economic growth and Goods and Services Tax(GST)  is considered the largest tax reform in the economic history of India.
  • Goods and Services Tax (GST) is a type of indirect tax that was enacted in the constitution by the 101st constitution amendment act, 2016.
  • It was introduced to save time, costs, and energy. The Law on Goods and Services Tax (GST) came into force on 1 July 2017.
  • GST was applied to four types of tax slabs 5%, 12%, 18%, and 28%. The schedule or list of these commodities will be established by the Goods and Services Tax Commission.
  • It subsumed Central Sales Tax, Service Tax, Excise duty of union and VAT, Luxury Tax, Entertainment Tax of states.

The correct answer is Custom duties.

Important Points

• The tax imposed on the import and export of commodities is called Custom duties.
• This is a form of foreign trade control and a policy that taxes foreign goods to encourage or protect domestic industry.
• Tariffs may be set (a constant sum per unit of imported goods or a percentage of the price) or variable (the amount varies by price). Import taxation means that consumers are less likely to purchase them because they are more costly.
• An excise tax is an indirect tax on the sale of a particular good or service charged by the Government.
• A VAT (Value-added tax) is a consumption tax that is imposed on a product whenever a value is added at each stage of the supply chain, from production to point of sale.
• Goods and Services Tax(GST) is an Indirect tax on the purchase of goods and services used in India.

The 101^st Amendment of the Constitution of India imposed the Goods and Services Tax(GST).

• This amendment introduced the National Goods and Services Tax (GST) in India as of 1st July 2017.
• It was adopted as the One Hundred and Twenty-Second Amendment Bill to the Constitution of India.
• The Goods and Services Tax (GST) is a value-added tax (VAT) imposed as a systematic indirect tax levy on the production, sale, and use of products and services at the national level.
• It shall absorb all indirect taxes imposed on goods and services by the central and state governments of India.

The correct option is VAT.

Key Points

• VAT is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale.
• VAT was introduced on April 1, 2005, in the country.
• VAT is an Indirect tax.
• Indirect taxes are those taxes that can be transferred on others by the taxpayers
• Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services.
• GST has replaced many indirect tax laws that previously existed in India.

Tax subsumed under the GST: