About this quiz
50 questions covering every section of the note.
This Lok Sewa practice set has 50 multiple-choice questions (Subject: Economics and Planning · For: Kharidar, Nayab Subba, Section Officer · Level: Easy). Take the quiz above first; after that, use the study list below to revise every question with its correct answer and a short explanation.
Study list: all 50 questions with answers and explanations
Nepal's fiscal year begins on:
- A) Baisakh 1
- B) Shrawan 1 ✔
- C) Magh 1
- D) Ashwin 1
Why: The fiscal year starts on Shrawan 1.
On which date is the federal budget presented?
- A) Jestha 15 ✔
- B) Asar 1
- C) Shrawan 1
- D) Baisakh 1
Why: It is presented on Jestha 15.
Which article fixes the budget date?
- A) Article 116
- B) Article 119 ✔
- C) Article 76
- D) Article 274
Why: Article 119 sets Jestha 15.
Provincial budgets are presented on:
- A) Jestha 15
- B) Asar 1 ✔
- C) Asar 10
- D) Shrawan 1
Why: Provinces present their budget on Asar 1.
Local levels must present their budget by:
- A) Asar 1
- B) Asar 10 ✔
- C) Jestha 15
- D) Shrawan 15
Why: By Asar 10.
Who presents the federal budget?
- A) Prime Minister
- B) Finance Minister ✔
- C) Governor of NRB
- D) President
Why: The Finance Minister presents it.
A budget where expenditure exceeds income is a:
- A) Surplus budget
- B) Balanced budget
- C) Deficit budget ✔
- D) Zero budget
Why: This is a deficit budget.
Salaries and office running costs are:
- A) Capital expenditure
- B) Recurrent expenditure ✔
- C) Financing
- D) Investment
Why: They are recurrent (chalu) expenditure.
Building roads and bridges is:
- A) Recurrent expenditure
- B) Capital expenditure ✔
- C) Transfer payment
- D) Charged expenditure
Why: Asset-creating spending is capital expenditure.
Loan repayment falls under:
- A) Financing (bittiya byabastha) ✔
- B) Recurrent expenditure
- C) Capital expenditure
- D) Revenue
Why: It is part of financing.
The Consolidated Fund is provided in:
- A) Article 116 ✔
- B) Article 117
- C) Article 119
- D) Article 101
Why: Article 116 creates the Consolidated Fund.
Expenditure not subject to vote in Parliament is called:
- A) Charged expenditure ✔
- B) Capital expenditure
- C) Recurrent expenditure
- D) Deficit
Why: Charged on the Consolidated Fund under Article 117.
Which Act authorises the government to spend money?
- A) Finance Act
- B) Appropriation Act ✔
- C) Company Act
- D) Labour Act
Why: The Appropriation (Biniyojan) Act.
Which Act authorises the government to collect taxes?
- A) Finance Act ✔
- B) Appropriation Act
- C) Civil Service Act
- D) Banking Act
Why: The Finance (Arthik) Act.
The Economic Survey is released:
- A) A day before the budget ✔
- B) On Shrawan 1
- C) After the budget
- D) Every five years
Why: It comes out a day before the budget.
Detailed budget estimates are published in the:
- A) Red Book ✔
- B) Blue Book
- C) White Paper
- D) Green Book
Why: The Red Book (Rato Kitab).
Gender-responsive budgeting in Nepal began in:
- A) 2053/54 BS
- B) 2063/64 BS ✔
- C) 2073/74 BS
- D) 2080/81 BS
Why: It started in 2063/64 BS.
Who audits government accounts?
- A) Nepal Rastra Bank
- B) Auditor General ✔
- C) Ministry of Finance
- D) CIAA
Why: The Auditor General audits them.
VAT and income tax are examples of:
- A) Tax revenue ✔
- B) Non-tax revenue
- C) Foreign grants
- D) Loans
Why: They are tax revenue.
A budget in which every item is justified from zero is a:
- A) Zero-based budget ✔
- B) Deficit budget
- C) Performance budget
- D) Supplementary budget
Why: This is zero-based budgeting.
A budget is best described as:
- A) A list of government employees
- B) The government's yearly plan of income and spending ✔
- C) A record of past audits
- D) A five-year development plan
Why: The budget is the yearly plan of government income and expenditure.
Nepal's fiscal year ends at the end of which month?
- A) Chaitra
- B) Jestha
- C) Asar ✔
- D) Shrawan
Why: The fiscal year runs from Shrawan 1 to the end of Asar.
In the Gregorian calendar, Nepal's fiscal year runs roughly from:
- A) January to December
- B) April to March
- C) Mid-July to mid-July ✔
- D) October to September
Why: Shrawan 1 to the end of Asar is about mid-July to mid-July.
To which body is the federal budget presented?
- A) Provincial Assembly
- B) Federal Parliament ✔
- C) National Planning Commission
- D) Supreme Court
Why: The Finance Minister presents the federal budget to the Federal Parliament.
Which body releases the Economic Survey?
- A) Nepal Rastra Bank
- B) Ministry of Finance ✔
- C) Central Bureau of Statistics only
- D) Auditor General
Why: The Ministry of Finance releases the Economic Survey a day before the budget.
The Red Book (रातो किताब) contains:
- A) Audit objections
- B) Detailed budget estimates by ministry and programme ✔
- C) Civil service rules
- D) Election results
Why: The Red Book gives detailed estimates by ministry and programme.
Which order of budget presentation is correct?
- A) Local by Asar 10, provincial on Asar 1, federal on Jestha 15
- B) Federal on Jestha 15, provincial on Asar 1, local by Asar 10 ✔
- C) Provincial on Jestha 15, federal on Asar 1, local on Shrawan 1
- D) All on Shrawan 1
Why: Federal comes on Jestha 15, provincial on Asar 1 and local by Asar 10.
Where is a provincial budget presented?
- A) Federal Parliament
- B) Provincial Assembly ✔
- C) Ward committee
- D) National Assembly only
Why: Provincial budgets are presented in the Provincial Assembly on Asar 1.
A budget in which expected income equals expenditure is a:
- A) Surplus budget
- B) Deficit budget
- C) Balanced budget ✔
- D) Performance budget
Why: A balanced budget has equal income and expenditure.
A budget in which income is more than expenditure is a:
- A) Surplus budget ✔
- B) Deficit budget
- C) Balanced budget
- D) Zero-based budget
Why: Surplus means income exceeds spending.
How is the gap in a deficit budget usually met?
- A) By printing receipts
- B) By loans and grants ✔
- C) By cutting the fiscal year short
- D) By stopping all taxes
Why: Nepal's deficit is financed by internal and foreign loans and grants.
Which type of budget does Nepal usually present?
- A) Surplus
- B) Balanced
- C) Deficit ✔
- D) Zero
Why: Nepal usually presents a deficit budget.
A budget that links spending to measurable results is a:
- A) Line-item budget
- B) Performance budget ✔
- C) Deficit budget
- D) Supplementary budget
Why: A performance budget links spending to results.
A gender-responsive budget classifies spending by:
- A) The age of employees
- B) Its benefit to women ✔
- C) The district of the office
- D) The source of loans
Why: Gender-responsive budgeting classifies spending by its benefit to women.
In zero-based budgeting, each year's estimate is based on:
- A) Last year's budget plus 10%
- B) Justifying every item from zero ✔
- C) The previous five-year average
- D) Donor demand only
Why: Every item must be justified from zero, not based on last year.
Grants given by the federal government to provinces and local levels are counted as:
- A) Capital expenditure
- B) Recurrent expenditure ✔
- C) Financing
- D) Revenue
Why: The note lists grants to provinces and local levels under recurrent expenditure.
Which is NOT capital (पुँजीगत) expenditure?
- A) Building a bridge
- B) Constructing a hydropower plant
- C) Paying monthly salaries ✔
- D) Constructing a school building
Why: Salaries are recurrent; capital spending creates assets.
Share investment by the government in a public company comes under:
- A) Recurrent expenditure
- B) Financing (वित्तीय व्यवस्था) ✔
- C) Non-tax revenue
- D) Charged expenditure
Why: Financing covers loan repayment and share or loan investments.
Fines and royalties are:
- A) Tax revenue
- B) Non-tax revenue ✔
- C) Capital expenditure
- D) Foreign loans
Why: Fees, fines, royalties and dividends are non-tax revenue.
Customs duty is an example of:
- A) Non-tax revenue
- B) Tax revenue ✔
- C) Foreign grant
- D) Financing
Why: Customs duty is listed as tax revenue.
A long-standing problem in Nepal's budget implementation is:
- A) Too much capital spending early in the year
- B) Low capital spending and a rush of spending in Asar ✔
- C) No recurrent expenditure
- D) Budget being presented in Shrawan
Why: Low capital spending and last-month (Asar) spending rush are long-standing problems.
Which goes into the Consolidated Fund (सञ्चित कोष)?
- A) Only foreign grants
- B) All government revenue and loans ✔
- C) Only provincial revenue
- D) Only deposits
Why: Article 116 says all government revenue and loans go into the Consolidated Fund.
Which is an example of expenditure charged on the Consolidated Fund?
- A) Salary of a section officer
- B) Remuneration of the President ✔
- C) Cost of building a road
- D) Office stationery
Why: Remuneration of the President, Vice-President, Chief Justice, judges and heads of constitutional bodies is charged expenditure.
Charged expenditure is:
- A) Voted by Parliament line by line
- B) Not subject to vote in Parliament ✔
- C) Paid only by provinces
- D) Paid from loans only
Why: Under Article 117, charged expenditure is not subject to vote.
Article 118 of the Constitution deals with:
- A) Contingency Fund
- B) Estimates of revenue and expenditure ✔
- C) Auditor General
- D) Consolidated Fund
Why: Article 118 covers estimates of revenue and expenditure, i.e. the budget.
The Appropriation Act is also called:
- A) अर्थ ऐन (Finance Act)
- B) विनियोजन ऐन (Biniyojan Ain) ✔
- C) निजामती सेवा ऐन
- D) लेखापरीक्षण ऐन
Why: The Appropriation Act is the Biniyojan Ain, which authorises spending.
Without the Finance Act, the government could not legally:
- A) Spend on salaries
- B) Collect taxes ✔
- C) Hold elections
- D) Appoint judges
Why: The Finance Act (Arthik Ain) authorises collection of taxes.
An earthquake causes urgent unexpected expenses. Money can first be drawn from the:
- A) Contingency Fund ✔
- B) Deposit account
- C) Provident fund
- D) Red Book
Why: The Contingency Fund is for unexpected expenses, later approved by Parliament.
Expenses met from the Contingency Fund are later:
- A) Never recorded
- B) Approved by Parliament ✔
- C) Repaid by the Finance Minister personally
- D) Charged to provinces
Why: Contingency Fund spending is later approved by Parliament.
The Auditor General is a:
- A) Private auditor
- B) Constitutional body ✔
- C) Department under the Ministry of Finance
- D) Provincial office
Why: The Auditor General is a constitutional body that audits government accounts.