Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Article 112 of the Constitution of India requires the government to present before the Parliament a statement of estimated receipts and expenditures of the government in respect of every financial year. This financial year runs from 1 April to 31 March. This ‘Annual Financial Statement’ constitutes the main budget document of the government. Two types of budget were prepared every year. One the general budget also called as union budget. The other was the railway budget. The Union Cabinet had in 2016 decided to merge the Railway Budget with the General Budget, thus ending the 92-year-old tradition of having a separate Railway Budget. It was for the first time on 1 February, 2021 that the finance minister of the country Mrs. Nirmala Sitharaman presented the first digital budget. This move was aimed at a paperless Budget with a digital tablet completely replacing 'bahi khata' (a ledger wrapped in red cloth) from which the fiancé minister read the budget.

Non-tax revenue of the central government mainly consists of i. Interest receipts on loans taken by the central government ii. Dividends and profits on investments made by the government, iii. Fees and other receipts for services rendered by the government iv. Cash grants-in-aid from foreign countries.
Which of the following is correct option after reading the above statements?

Options:

i,ii

ii, iii

i, ii, iii

i, ii, iii, iv

Correct Answer:

i, ii, iii, iv

Explanation:

Non-tax revenue of the central government mainly consists of interest receipts on account of loans by the central government, dividends and profits on investments made by the government, fees and other receipts for services rendered by the government. Cash grants-in-aid from foreign countries and international organisations are also included.