What is Financial Management in the context of public administration?

Financial Management is essential in public administration.

• It ensures resource allocation.

• Promotes transparency in budgeting.

• Aims for efficient policy implementation.

True or False: The Union Budget is a monthly financial statement that details government expenditures.

False. The Union Budget is an annual financial statement of estimated receipts and expenditures.

What are the key components of the Union Budget?

Components include Revenue Budget and Capital Budget.

True or False: The Finance Ministry plays no role in monitoring fiscal policies.

False. The Finance Ministry monitors fiscal policies as part of its responsibilities.

What is Fiscal Policy and how does it relate to Financial Management?

Fiscal Policy affects Financial Management.

• Government decisions on spending.

• Influences economic growth and stability.

• Affects taxation and resource allocation.

The Finance Commission recommends distribution of tax revenues between ___ and ___?

Union and States

What is the role of the Comptroller and Auditor General (CAG) in Financial Management?

CAG ensures financial accountability and transparency.

• Audits Union and State accounts.

• Reports financial irregularities.

• Promotes transparency in spending.

How is public debt managed in India?

Public debt is managed by the Finance Ministry through borrowing, issuing bonds, and maintaining fiscal discipline.

True or False: Centrally Sponsored Schemes are entirely funded and implemented by the State governments.

False. Centrally Sponsored Schemes are Union-funded programs implemented by States.

What is the purpose of the Fiscal Responsibility and Budget Management (FRBM) Act?

The FRBM Act aims to ensure fiscal discipline by setting targets for reducing fiscal deficit and public debt.

How is tax administration managed in India?

Tax administration is handled by the CBDT for direct taxes and by the CBIC for indirect taxes.

What is Goods and Services Tax (GST) and how does it impact financial management?

GST is a unified indirect tax system replacing multiple taxes, enhancing revenue efficiency and simplifying fiscal management.

What are the major challenges in Financial Management in India?

Challenges include fiscal deficits, tax evasion, inefficient subsidy targeting, and delays in fund utilization.

What is Zero-Based Budgeting, and how is it used in Financial Management?

Zero-Based Budgeting requires justifying all expenses from scratch each year, promoting efficiency and aligning expenditures with current priorities.