In percentage terms, the Centre's fiscal deficit at the end of February stood at 82.7 per cent of the full year budget target, mainly on account of higher expenditure. In the last financial year, the fiscal gap between the expenditure and revenue was 76 per cent of the Revised Estimate of 2020-21. In actual terms, as per the data released by the Controller General of Accounts, the deficit stood at Rs 13.16 trillion at the end of February. The total receipts of central government were 83.9 percent of the Revised Estimate of Budget 2021-22. or Rs 18.27 trillion in absolute terms. It was 88.2 per cent of the Revised Estimate of 2020-21 in the corresponding period last financial year. The government's total expenditure was at Rs 31.43 trillion or 83.4 per cent of the current year's RE. It was 81.7 per cent of Revised Estimate in the corresponding period last financial year.

Given below are some statements. Read them carefully and choose the correct statement (s) from the given options.

Statement 1: The budget is merely a statement of receipts and expenditures.

Statement 2: Along with the budget, two policy statements are mandated by the Fiscal Responsibility and Budget Management Act, 2003 (FRBMA)   

None of the given statement is correct.

The correct answer is option 4:None of the given statement is correct.

Statement 1: The budget is merely a statement of receipts and expenditures. This is incorrect. The budget is not merely a statement of receipts and expenditures. Since Independence, with the launching of the Five-Year Plans, it has also become a significant national policy statement. The budget, it has been argued, reflects and shapes, and is, in turn, shaped by the country’s economic life. 

Statement 2: Along with the budget, two policy statements are mandated by the Fiscal Responsibility and Budget Management Act, 2003 (FRBMA). This is incorrect. Along with the budget, three policy statements are mandated by the Fiscal Responsibility and Budget Management Act, 2003 (FRBMA) i.e. Medium-term Fiscal Policy Statement, Fiscal Policy Strategy Statement and Macroeconomic Framework Statement