Question : The "Annual Financial Statement" in the government budget includes:
Option 1: Revenue Budget and Capital Budget
Option 2: Receipts Budget and Expenditure Budget
Option 3: Consolidated Fund and Public Account
Option 4: Direct Taxes and Indirect Taxes
Correct Answer: Revenue Budget and Capital Budget
Solution : The correct answer is (a) Revenue Budget and Capital Budget.
The "Annual Financial Statement" in the government budget typically includes the Revenue Budget and Capital Budget.
The Revenue Budget provides details about the government's anticipated revenue receipts and expenditure on revenue accounts. It includes revenue from various sources such as taxes (direct and indirect), non-tax revenue, grants, and other receipts. The expenditure on revenue accounts includes expenses related to salaries, pensions, subsidies, maintenance costs, and other day-to-day expenses.
The Capital Budget, on the other hand, focuses on the government's capital receipts and expenditure. It includes capital receipts from sources such as borrowings, disinvestment, and recovery of loans. The capital expenditure covers investments in infrastructure, assets, and developmental projects.
Together, the Revenue Budget and Capital Budget form the Annual Financial Statement, providing a comprehensive overview of the government's anticipated revenue and planned expenditure.
