Arrange the steps involved in preparation of the government budget.
(A) Discussion and approval by the parliament.
(B) Preparation of budget by the Ministry of Finance.
(C) Implementation by the government.
(D) Approval by the Cabinet.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (B), (D), (A), (C)
A budget is first prepared, then approved at two levels, and only then put to use:
(B) Preparation of budget by the Ministry of Finance. — The ministry estimates the receipts and expenditure of the coming year and draws up the budget.
(D) Approval by the Cabinet. — The Union Cabinet approves it before it goes to the Parliament.
(A) Discussion and approval by the parliament. — The budget is presented in the Parliament, which discusses and passes it.
(C) Implementation by the government. — After this approval, the government spends and collects money as the budget says.
Note: This question framed by NTA is outside the NCERT book (2026-27 edition). None of the NCERT books (2026-27, 2025-26, 2023-24 or pre-rationalised) describes the steps of preparing the budget. They say only that the Constitution (Article 112) requires a statement of estimated receipts and expenditures. It is presented before the Parliament for every financial year.
NCERT (2026-27): “5.1 Government Budget — Meaning and its Components … There is a constitutional requirement in India (Article 112) to present before the Parliament a statement of estimated receipts and expenditures of the government in respect of every financial year which runs from 1 April to 31 March. This ‘Annual Financial Statement’ constitutes the main budget document of the government. 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.…” |