Consider the following statements regarding the government budget: 1. It is a financial statement restricted only to the expenditure of the previous fiscal year. 2. It includes the plan for government spending in the coming year. 3. It accounts for the sources of revenue such as taxes. Which of the statements given above is/are correct?

The correct option is (c). Explanation Under Article 112 of the Constitution of India, the Budget is referred to as the "Annual Financial Statement." It is a comprehensive statement of the estimated receipts and expenditure of the Government of India for a specific financial year, which runs from April 1 to March 31. - Statement 1 is Incorrect: The Budget is not restricted to the expenditure of the previous fiscal year. It typically presents data covering three years: 1. Actual figures for the preceding financial year. 2. Budget and Revised Estimates for the current financial year. 3. Budget Estimates for the upcoming financial year. Additionally, it includes both receipts (revenue) and expenditure, not just expenditure. - Statement 2 is Correct: A core component of the Budget is the presentation of the government's spending plan (Budget Estimates) for the coming financial year, detailing allocations for various ministries, schemes, and sectors. - Statement 3 is Correct: The Budget explicitly accounts for the sources of funds. It details estimated receipts, which include tax revenues (such as income tax and GST), non-tax revenues, and capital receipts (such as borrowings and disinvestment proceeds). Key Takeaway: The Annual Financial Statement (Budget) under Article 112 comprises the estimated receipts and expenditure for the upcoming financial year, while also presenting the actuals of the previous year and revised estimates of the current year for comparison.

NCERT Class 8 Political Science — Chapter 5: Public Facilities

mcqmedium

Consider the following statements regarding the government budget:

It is a financial statement restricted only to the expenditure of the previous fiscal year.
It includes the plan for government spending in the coming year.
It accounts for the sources of revenue such as taxes.

Which of the statements given above is/are correct?

Official previous-year question

Verified 1 Aug 2026.

Options

A1 and 2 only
B2 only
C2 and 3 only
D1, 2 and 3

Did you get this right?

Solution

The correct option is (c).

Explanation

Under Article 112 of the Constitution of India, the Budget is referred to as the "Annual Financial Statement." It is a comprehensive statement of the estimated receipts and expenditure of the Government of India for a specific financial year, which runs from April 1 to March 31.

Statement 1 is Incorrect: The Budget is not restricted to the expenditure of the previous fiscal year. It typically presents data covering three years:
1. Actual figures for the preceding financial year.
2. Budget and Revised Estimates for the current financial year.
3. Budget Estimates for the upcoming financial year.
Additionally, it includes both receipts (revenue) and expenditure, not just expenditure.
Statement 2 is Correct: A core component of the Budget is the presentation of the government's spending plan (Budget Estimates) for the coming financial year, detailing allocations for various ministries, schemes, and sectors.
Statement 3 is Correct: The Budget explicitly accounts for the sources of funds. It details estimated receipts, which include tax revenues (such as income tax and GST), non-tax revenues, and capital receipts (such as borrowings and disinvestment proceeds).

Key Takeaway: The Annual Financial Statement (Budget) under Article 112 comprises the estimated receipts and expenditure for the upcoming financial year, while also presenting the actuals of the previous year and revised estimates of the current year for comparison.

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?

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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?

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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?

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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?

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

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The correct option is (c).

Explanation

Statement 1 is Incorrect: The Budget is not restricted to the expenditure of the previous fiscal year. It typically presents data covering three years:
1. Actual figures for the preceding financial year.
2. Budget and Revised Estimates for the current financial year.
3. Budget Estimates for the upcoming financial year.
Additionally, it includes both receipts (revenue) and expenditure, not just expenditure.
Statement 2 is Correct: A core component of the Budget is the presentation of the government's spending plan (Budget Estimates) for the coming financial year, detailing allocations for various ministries, schemes, and sectors.
Statement 3 is Correct: The Budget explicitly accounts for the sources of funds. It details estimated receipts, which include tax revenues (such as income tax and GST), non-tax revenues, and capital receipts (such as borrowings and disinvestment proceeds).