Question

Which is not the part of a government budget ?

• A. Revenue Budget
• B. Capital Budget
• C. Both (a) and (b)
• D. Domestic Budget

Hint:

Govt Budget = Revenue Budget (Recurrent) + Capital Budget (Asset/Liability related).

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
A government budget is a comprehensive statement of estimated receipts and expenditures of the government for a financial year. It is structured into specific functional categories.
Step 2: Detailed Explanation:
The Government Budget consists of two main parts:
1. Revenue Budget: This includes revenue receipts (tax and non-tax) and revenue expenditure (spending that doesn't create assets, like salaries).
2. Capital Budget: This includes capital receipts (loans, disinvestment) and capital expenditure (spending that creates assets, like building roads).
"Domestic Budget" is not a formal accounting division in the official government budgetary framework.
Step 3: Final Answer:
The official parts are Revenue and Capital budgets; Domestic Budget is not a standard component.