Question : The government budget is classified into ____________ and ____________.
Option 1: Direct taxes, indirect taxes
Option 2: Planned expenditure, non-planned expenditure
Option 3: Revenue receipts, revenue expenditure
Option 4: Current account, capital account
Correct Answer: Planned expenditure, non-planned expenditure
Solution : The correct answer is (B) Planned expenditure and non-planned expenditure.
Planned expenditure refers to the government's spending on planned development programs and projects. These expenditures are part of the government's long-term development plans and are aimed at achieving specific socio-economic objectives. Examples of planned expenditure include investments in infrastructure, education, healthcare, and other developmental initiatives.
Non-planned expenditure, on the other hand, refers to the government's spending that is not directly related to planned development programs. It includes regular and recurring expenses such as interest payments on loans, defense expenditure, salaries and pensions of government employees, subsidies, grants, and other non-development expenditures.
