Budgeting Policy includes:
A. Revenue Repo Rate
B. Taxes
C. Public Borrowing
D. Public Expenditure
E. Open Market operation
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 2
The correct answer is option (2) : B, C and D only
Budgeting policy typically encompasses various fiscal tools and actions aimed at managing government finances.
A. Revenue Repo Rate - This is not directly related to budgeting policy. Repo rate is a monetary policy tool used by central banks to control inflation and liquidity in the economy, not directly related to government budgeting.
B. Taxes - This is a key component of budgeting policy as governments use taxation to raise revenue to fund public expenditures and manage the economy.
C. Public Borrowing - Governments often resort to borrowing to finance budget deficits or fund infrastructure projects. It is an important aspect of budgeting policy.
D. Public Expenditure - This refers to government spending on various sectors such as education, health, infrastructure, etc. It is a central component of budgeting policy as it reflects government priorities and economic management.
E. Open Market Operation - This is a monetary policy tool used by central banks to regulate money supply and interest rates, not directly related to government budgeting.