Q. With reference to the Union Budget, consider the following statements:
1.It is a revenue and expenditure statement of the government.
2.Article 112 of the Indian Constitution refers to the Union Budget as the Annual Financial Statement (AFS).
3.The Reserve Fund of India is a part of the structure of the Union Budget.
4.The ‘Halwa Ceremony’ in the Union Budget is a celebration after the Budget is presented.
How many of the statements given above are correct?
Answer: B
Notes:
Explanation –
Statements 1 and 2 are correct. The Union Budget outlines the government’s income (revenue) and spending (expenditure) for the upcoming financial year. Article 112 of the Indian Constitution refers to the Union Budget as the Annual Financial Statement (AFS).
Statements 3 and 4 are incorrect. There is no such fund called the Reserve Fund of India as part of the Union Budget structure. There are, however, other funds like the Contingency Fund and Public Account. The Halwa Ceremony is a tradition marking the beginning of the budget-making process, not a celebration after its presentation. It symbolizes the secrecy maintained during the budget preparation.
Source: The Hindu
