Consider the following statements about the documents presented with the budget:
(A) A Finance Bill is presented along with the Annual Financial Statement.
(B) The Finance Bill provides details on the imposition, abolition, remission, alteration or regulation of taxes proposed in the Budget.
(C) The estimates of revenue receipts take into account the effects of tax proposals made in the Finance Bill.
(D) The Finance Bill sets the priorities of the government in the fiscal area.
(E) The Medium-term Fiscal Policy Statement sets a five-year rolling target for specific fiscal indicators.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (B) and (C) only
The Finance Bill carries the tax proposals of the budget. The three FRBMA statements are separate documents.
(A) A Finance Bill is presented along with the Annual Financial Statement. — Correct. Both come together.
(B) The Finance Bill provides details on the imposition, abolition, remission, alteration or regulation of taxes proposed in the Budget. — Correct. This is its content.
(C) The estimates of revenue receipts take into account the effects of tax proposals made in the Finance Bill. — Correct. Tax changes change expected receipts.
(D) The Finance Bill sets the priorities of the government in the fiscal area. — Incorrect. This is done by the Fiscal Policy Strategy Statement.
(E) The Medium-term Fiscal Policy Statement sets a five-year rolling target for specific fiscal indicators. — Incorrect. The target is a three-year rolling target.
NCERT (2026-27): “5.1.2 Classification of Receipts … Non-tax revenue of the central government mainly consists of interest receipts on account of loans by the central government, dividends and profits on investments made by the government, fees and other receipts for services rendered by the government. Cash grants-in-aid from foreign countries and international organisations are also included. The estimates of revenue receipts take into account the effects of tax proposals made in the Finance Bill …” “A Finance Bill, presented along with the Annual Financial Statement, provides details on the imposition, abolition, remission, alteration or regulation of taxes proposed in the Budget.” “… The Medium-term Fiscal Policy Statement sets a three-year rolling target for specific fiscal indicators and examines whether revenue expenditure can be financed through revenue receipts on a sustainable basis and how productively capital receipts including market borrowings are being utilised. The Fiscal Policy Strategy Statement sets the priorities of the government in the fiscal area, examining current policies and justifying any deviation in important fiscal measures. …” |