Financial Resource Mobilization in India: Candidates preparing for various competitive examinations will find this quiz highly useful. It includes carefully selected MCQs based on the topic Mobilization of Financial Resources in India, which is an important part of the Indian Economy syllabus. These questions are designed to help aspirants understand key concepts and improve their exam readiness. By practicing the MCQs provided here, students can strengthen their conceptual clarity and gain better confidence while attempting economy-related questions in competitive examinations.
Financial Resource Mobilization in India – MCQs for Competitive Exams
1. The concept of mobilization of resources mainly refers to—
A) Expansion of private sector only
B) Reduction in taxation
C) Efficient collection and proper use of financial resources
D) Promotion of exports
Answer: C
2. Which of the following is not considered a source of government revenue?
A) Taxes
B) Borrowings
C) Import duties
D) Private charity
Answer: D
3. India’s tax-to-GDP ratio during 2023–24 was close to—
A) 21%
B) 28%
C) 34%
D) 11.6%
Answer: D
4. Spending on which component has reduced allocations for health and education?
A) Defence
B) Transport infrastructure
C) Technology investment
D) Subsidies
Answer: D
5. Which of the following is not included in the Union Government’s subsidy burden?
A) Food
B) Fertilizer
C) Fuel
D) Railways
Answer: D
6. Taxpayers constitute approximately what percentage of Indian voters?
A) 50%
B) 35%
C) 10%
D) 2.2%
Answer: D
7. Vertical and horizontal fiscal imbalance exists mainly between—
A) RBI and commercial banks
B) Private and public sector
C) Centre and State governments
D) Rural and urban regions
Answer: C
8. India’s fiscal deficit touched about 9.22% of GDP in—
A) 2011–12
B) 2018–19
C) 2020–21
D) 2022–23
Answer: C
9. Major income tax arrears during 2017–18 were around—
A) ₹1.5 lakh crore
B) ₹5 lakh crore
C) ₹11.1 lakh crore
D) ₹50,000 crore
Answer: C
10. Which initiative helps rationalise subsidies through digital linkage?
A) UPI payments
B) DBT using Jan Dhan, Aadhaar and Mobile
C) Aadhaar–PAN grievance system
D) Mudra Card
Answer: B
11. One Nation One Ration Card scheme is related to—
A) GST reforms
B) Food subsidy delivery
C) Railway services
D) Corporate taxation
Answer: B
12. National Land Monetisation Corporation was established to—
A) Sell gold reserves
B) Borrow foreign funds
C) Monetise land and non-core PSU assets
D) Manage pension funds
Answer: C
13. The largest source of revenue for Urban Local Bodies is—
A) Toll charges
B) Stamp duty
C) Property tax
D) Fuel cess
Answer: C
14. Property tax collection efficiency of ULBs between 2015–20 was about—
A) 25%
B) 53%
C) 72%
D) 90%
Answer: B
15. The share of non-tax revenue in GDP over the last decade remained close to—
A) 1%
B) 6%
C) 10%
D) 20%
Answer: A
16. The financial burden of the Old Pension Scheme is nearly—
A) 1.5 times higher than NPS
B) 2 times higher
C) 3 times higher
D) 4.5 times higher than NPS
Answer: D
17. Panchayati Raj Institutions mainly depend on—
A) Property tax
B) Corporate tax
C) Donations
D) Grants from State and Union governments
Answer: D
18. Which tax source has not been fully utilised by Panchayats?
A) Income tax
B) GST
C) Profession tax
D) Service tax
Answer: C
19. Urban local bodies should be allowed to collect service charges from—
A) Agricultural land
B) Rural Panchayats
C) Government-owned properties
D) Foreign tourists
Answer: C
20. Gross Fixed Capital Formation (GFCF) mainly refers to—
A) Human capital only
B) Fixed capital assets
C) Gold and valuables
D) Foreign exchange reserves
Answer: B
21. A key indicator of future investment confidence is—
A) GDP growth
B) Imports
C) Forex reserves
D) Private sector GFCF
Answer: D
22. Slow growth of GFCF is mainly due to—
A) Population decline
B) High agricultural output
C) Banking stress and high borrowing costs
D) Low literacy rate
Answer: C
23. Urban Local Bodies can raise funds through—
A) External aid only
B) Agricultural cess
C) Municipal bonds
D) Corporate takeover
Answer: C
24. One recommendation to improve State fiscal health is to—
A) Remove GST
B) Ban all user charges
C) Reduce banking supervision
D) Introduce performance-based fund transfers
Answer: D
25. Green Bonds are mainly useful for—
A) Oil exploration
B) Education subsidies
C) Climate finance mobilisation
D) Population census
Answer: C