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    Question

    With reference to the Union Budget of India, which of

    the following statements is correct?
    A The Union Budget includes only revenue receipts and revenue expenditure of the government Correct Answer Incorrect Answer
    B The Annual Financial Statement is presented to Parliament under Article 110 of the Constitution Correct Answer Incorrect Answer
    C The Union Budget distinguishes between revenue and capital receipts as well as revenue and capital expenditure Correct Answer Incorrect Answer
    D The Budget is approved by the President before being discussed in Parliament Correct Answer Incorrect Answer
    E The Budget becomes effective immediately upon its presentation in the Lok Sabha Correct Answer Incorrect Answer

    Solution

    As per Article 112 of the Indian Constitution, the Union Budget is defined as a statement of the estimated receipts and expenditure (both revenue and capital) of the government for that particular year. It is also referred to as the Annual Financial Statement as it details the account of the government finances for the financial year that starts from 1st April to 31st March. ·        The budget is prepared by the Department of Economic Affairs under the Ministry of Finance. ·        The budget was presented by Minister of Finance. The Finance Minister meets the President to seek a formal assent to the presentation date and then presents the budget in Parliament after cabinet approval. ·        The core of the budgetary process involves discussion, debate, and voting in Parliament, primarily in the Lok Sabha, before it can take effect on April 1, the beginning of India's financial year.  

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