Which document, presented along with the Annual Financial Statement, gives details of the imposition, abolition, remission, alteration or regulation of taxes proposed in the Budget?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → The Finance Bill
The Finance Bill comes with the Annual Financial Statement. It gives the details of the tax proposals of the Budget.
The other three are the policy statements mandated by the FRBMA. They deal with fiscal targets, priorities and the outlook of the economy.
NCERT (2026-27): “A Finance Bill, presented along with the Annual Financial Statement, provides details on the imposition, abolition, remission, alteration or regulation of taxes proposed in the Budget.” “… Along with the budget, three policy statements are mandated by the Fiscal Responsibility and Budget Management Act, 2003 … The Medium-term Fiscal Policy Statement sets a three-year rolling target for specific fiscal indicators and examines whether revenue expenditure can be financed through revenue receipts on a sustainable basis and how productively capital receipts including market borrowings are being utilised. The Fiscal Policy Strategy Statement sets the priorities of the government in the fiscal area, examining current policies and justifying any deviation in important fiscal measures. The Macroeconomic Framework Statement assesses the prospects of the economy with respect to the GDP growth rate, fiscal balance of the central government and external …” |