Q. With reference to the Union Budget of India, consider the following statements:
1.The Revenue Budget comprises revenue receipts and revenue expenditure, focusing on day-to-day operations without creating assets or liabilities.
2.Capital receipts include only disinvestment proceeds and do not encompass market borrowings or recoveries of loans.
3.The total budget outlay for 2025-26 is estimated at ₹50.65 lakh crore, with capital expenditure targeted at 3.1% of GDP.
4.Fiscal Deficit is calculated as the difference between total expenditure and total receipts excluding borrowings.
Which of the statements given above is/are correct?
Answer: C
Notes:
Explanation:
Statement 1: Correct. The Revenue Budget deals with recurring income and expenses like taxes, salaries, and subsidies, maintaining operational continuity.
Statement 2: Incorrect. Capital receipts broadly include borrowings (market loans, external aid), disinvestment, and loan recoveries, not limited to disinvestment.
Statement 3: Correct. For 2025-26, total expenditure is budgeted at ₹50.65 lakh crore, with ₹11.21 lakh crore allocated for capital expenditure, equating to 3.1% of GDP.
Statement 4: Incorrect. Fiscal Deficit measures total expenditure minus (revenue receipts + non-debt capital receipts), highlighting borrowing needs.
