Only 2 is correct.
GDP is the value of the final goods and services produced within a country within an year.
Indian nationals living abroad do not contribute to India’s GDP. They do however contribute to India’s GNP.
But, the gross capital investments made during a financial year directly accounts as a part of GDP since it creates infrastructure which has an economic value, e.g. a bridge, or a tunnel or a furnace.

All 1, 2, 3 and 4 are correct.
The term ‘deficit financing’ is used to denote the direct addition to gross national expenditure through budget deficits, whether the deficits are on revenue or on capital account.
Deficit financing in India is said to occur when the Union Government’s current budget deficit is covered by the withdrawal of cash balances of the government and by borrowing money from the Reserve Bank of India. Thus, in both cases, ‘new money’ comes into circulation.
It is said that deficit financing is inherently inflationary. Since deficit financing raises aggregate expenditure and, hence, increases aggregate demand, the danger of inflation looms large.
During inflation, private investors go on investing more and more with the hope of earning additional profits. The deficit financing results in an increase in government expenditure which produces a favourable multiplier effect on national income, saving, employment, etc.

2 and 3 are correct.
The current account measures the flow of goods, services and investments into and out of the country. We run into a deficit if the value of the goods and services we import exceeds the value of those we export. The current account includes net income, including interest and dividends, and transfers, like foreign aid.
Therefore, increasing foreign aid to underdeveloped nations increases the current account deficit. However, increasing import duties and providing export subsidies help in reducing the current account deficit.

1 and 2 are correct.
Cess is a form of tax levied or collected by the government for the development or welfare of a particular service or sector.
It is charged over and above direct and indirect taxes. Cess collected for a particular purpose cannot be used for or diverted to other purposes. It is not a permanent source of revenue for the government, and it is discontinued when the purpose levying it is fulfilled.
Examples: Education Cess, Swachh Bharat Cess, Krishi Kalyan Cess etc.
While all taxes go to the Consolidated Fund of India (CFI), cess may initially go to the CFI but has to be used for the purpose for which it was collected.
If the cess collected in a particular year goes unspent, it cannot be allocated for other purposes. The amount gets carried over to the next year and can only be used for the cause it was meant for

1 and 3 are correct.
Indirect Tax is a tax levied by the Government on goods and services and not on the income, profit or revenue of an individual and it can be shifted from one taxpayer to another.
Indirect taxes are charged the same for all income groups. Few indirect taxes: Customs Duty, Central Excise Duty, Service Tax, Sales Tax and Value Added Tax (VAT).
Cascading effect of tax is a situation wherein the end-consumer of any goods or service has to bear the burden of the tax to be paid on the previously calculated tax and as a result would suffer an increased or inflated price.