Read the case study given below and answer the question :

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 one 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.)

Identify the incorrect statement :

Government budget refers to the actual receipts and payments of the government

The correct answer is option (1) : Government budget refers to the actual receipts and payments of the government

The government budget does not directly refer to the actual receipts and payments but rather presents the government's estimated revenues and expenditures for a specific financial year. It serves as a financial plan outlining the government's proposed financial activities.

The other statements are all correct:

Government budget has two components: revenue Budget and Capital Budget: This accurately divides the budget into two sections: revenue for day-to-day operations (revenue budget) and funds for capital projects and asset acquisition (capital budget).

Capital budget records transactions relating to change in assets and liabilities of the government: The capital budget tracks government investments in infrastructure, buildings, etc., which affect its assets and liabilities.

Revenue budget has two components: Revenue Receipt and Revenue Expenditure: This breakdown details the sources of income (taxes, fees, etc.) and how that income is used to cover government expenses.