CUET Preparation Today
Which of the following is TRUE in regards to the government budget? |
It is a document relating to the expected revenue and anticipated expenditure of the government for a particular financial year. There are two accounts in government budget- transactions that relate to the current financial year only are included in the revenue account also called revenue budget and those that concern the assets and liabilities of the government into the capital account also called capital budget. Both are true None of these |
Both are true |
The correct answer is option 3: Both are true The government budget outlines the expected revenue (from taxes, fees, etc.) and anticipated expenditure (on various public services and projects) for a given financial year. Although the budget document relates to the receipts and expenditure of the government for a particular financial year, the impact of it will be there in subsequent years. There is a need therefore to have two accounts- those that relate to the current financial year only are included in the revenue account (also called revenue budget) and those that concern the assets and liabilities of the government into the capital account (also called capital budget). |
