Which of the following statements is/are the elements of Union Budget presented annually in the Parliament of India?

1. Estimates of expenditure 

2. Ways and means to raise the revenue 

3. Economic and financial policy of previous year 

4. Reasons for any deficit or surplus of the closing financial year 

Select the correct answer using the codes given below: 

a) 1 and 3 only 

b) 2 and 4 only 

c) 1, 2 and 4 only 

d) 1, 2, 3 and 4

Solution: 

• The budget is a statement of the estimated receipts and expenditure of the Government of India in a financial year, which begins on 1st April and ends on 31st March of the following year. In addition to the estimates of receipts and expenditure, the budget contains certain other elements. Overall, the budget contains the following: 
• 1) Estimates of revenue and capital receipts; 
• 2) Ways and means to raise the revenue; 
• 3) Estimates of expenditure; 
• 4) Details of the actual receipts and expenditure of the closing financial year and the reasons for any deficit or surplus in that year; and 
• 5) Economic and financial policy of the coming year, that is, taxation proposals, prospects of  revenue, spending programme and introduction of new schemes/projects. 

Ans: (c)