Which of the following indicates features of budget in India?
- It indicates the actual statement of receipts and expenditure of the country.
- It is a constitutional requirement to present budget before parliament.
- It impacts the economy through aggregate monetary discipline.
- The ‘Annual Financial Statement’ constitutes the main budget document of the government.
Answer & explanation
Correct answer: option 4
The correct answer is Option 4: 2 and 4
- It indicates the actual statement of receipts and expenditure of the country. False. Budget is an annual statement of expected receipts and estimated expenditure of the government.
- It is a constitutional requirement to present budget before parliament. True.
- It impacts the economy through aggregate monetary discipline. False. Budget impacts the economy through the fiscal policies of the government which relates to government expenditure and taxation policies.
- The ‘Annual Financial Statement’ constitutes the main budget document of the government.True.