NCERT Class 8 Political Science — Chapter 5: Public Facilities

mcqeasy

Assertion (A): The 'Revenue Budget' deals with the government's assets and liabilities. Reason (R): The government budget is a statement of estimated receipts and expenditure for the coming financial year.

Official previous-year question

Verified 1 Aug 2026.

Options

ABoth A and R are true and R is the correct explanation of A
BBoth A and R are true but R is NOT the correct explanation of A
CA is true but R is false
DA is false but R is true

Did you get this right?

Solution

The correct option is (d).

Explanation

The Government Budget (Annual Financial Statement under Article 112) is classified into two main parts: the Revenue Budget and the Capital Budget. This classification is based on whether the financial transactions affect the government's asset-liability status.

Statement-wise Analysis

Assertion (A): Incorrect
The Revenue Budget deals with the current financial transactions of the government, which are recurring in nature. It consists of Revenue Receipts (tax and non-tax revenue) and Revenue Expenditure (salaries, subsidies, interest payments). These transactions do not create assets or reduce liabilities.
It is the Capital Budget that deals with the government's assets and liabilities. Capital Receipts (e.g., borrowings, disinvestment) and Capital Expenditure (e.g., infrastructure development, repayment of loans) directly impact the asset-liability position of the government.
Reason (R): Correct
According to Article 112 of the Constitution of India, the Annual Financial Statement (Budget) is a statement of the estimated receipts and expenditure of the Government of India for the ensuing financial year (April 1 to March 31).

Key Takeaway

Revenue Budget implies zero change in assets or liabilities (recurring items), whereas Capital Budget implies a change in the government's assets or liabilities (long-term items).

Your note

More from Chapter 5: Public Facilities

Which of the following best describes the relationship between the 'Right to Water' and the Constitution of India?

medium

With reference to the judicial interpretation of the Right to Life in the context of water, consider the following 1. The right entitles every person to sufficient water for domestic use. 2. The water provided must be physically accessible and affordable. 3. The state is not obligated to prevent the contamination of water sources by private industries. Which of the statements given above is/are correct?

medium

Consider the following assertions regarding 'Public Facilities': 1. Once a public facility is provided, its benefits can be shared by many people simultaneously. 2. The construction of a school or the supply of electricity are examples of facilities where the benefit is restricted to a single user. 3. Public facilities are essential services provided solely by the private sector in India. Which of the statements given above is/are correct?

easy

Consider the following statements regarding the role of the government in the economy: 1. The government plays a central role in regulating economic activities through laws. 2. The government has no role in the enforcement of laws concerning working conditions in private factories. 3. The government is responsible for ensuring that public facilities are made available to everyone. Which of the statements given above is/are correct?

medium

Which of the following best defines the concept of 'Universal Access' in the context of public facilities?

easy

Keep practising Chapter 5: Public Facilities

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The correct option is (d).

Explanation

Statement-wise Analysis

Assertion (A): Incorrect
The Revenue Budget deals with the current financial transactions of the government, which are recurring in nature. It consists of Revenue Receipts (tax and non-tax revenue) and Revenue Expenditure (salaries, subsidies, interest payments). These transactions do not create assets or reduce liabilities.
It is the Capital Budget that deals with the government's assets and liabilities. Capital Receipts (e.g., borrowings, disinvestment) and Capital Expenditure (e.g., infrastructure development, repayment of loans) directly impact the asset-liability position of the government.
Reason (R): Correct
According to Article 112 of the Constitution of India, the Annual Financial Statement (Budget) is a statement of the estimated receipts and expenditure of the Government of India for the ensuing financial year (April 1 to March 31).

Key Takeaway

Revenue Budget implies zero change in assets or liabilities (recurring items), whereas Capital Budget implies a change in the government's assets or liabilities (long-term items).