Question : The "Plan and Non-Plan classification" in the government budget was replaced by:
Option 1: Revenue and Capital classification
Option 2: Current and Development classification
Option 3: Revenue and Expenditure classification
Option 4: Primary and Secondary classification
Correct Answer: Current and Development classification
Solution : The correct answer is (b) Current and Development classification.
The "Plan and Non-Plan classification" in the government budget has been replaced by the Current and Development classification. This change was implemented by the Government of India in the financial year 2017-2018.
Under the previous Plan and Non-Plan classification, government expenditure was categorized into Plan and Non-Plan components. The Plan expenditure included funds allocated for various planned programs and schemes, aimed at achieving specific developmental goals. Non-Plan expenditure encompassed regular recurring expenses such as salaries, pensions, and interest payments.
However, in an effort to streamline and rationalize budgetary allocations, the government transitioned to the Current and Development classification. Under the Current and Development classification, government expenditure is divided into Current Expenditure and Development Expenditure.
The change from Plan and Non-Plan classification to Current and Development classification was made to shift the focus from mere allocation of funds to more effective utilization and outcome-oriented spending.
Question : The government budget is classified into ____________ and ____________.
Option 1: Direct taxes, indirect taxes
Option 2: Planned expenditure, non-planned expenditure
Option 3: Revenue receipts, revenue expenditure
Option 4: Current account, capital account
Question : Expenditure of the government on health facilities, education and fixed-asset acquisition is termed as _________.
Option 1: revenue expenditure
Option 2: plan expenditure
Option 3: non-plan revenue expenditure
Option 4: capital expenditure
Question : The "Annual Financial Statement" in the government budget includes:
Option 1: Revenue Budget and Capital Budget
Option 2: Receipts Budget and Expenditure Budget
Option 3: Consolidated Fund and Public Account
Option 4: Direct Taxes and Indirect Taxes
Question : The concept of "fiscal deficit" in the government budget represents:
Option 1: The excess of total revenue over total expenditure
Option 2: The excess of total expenditure over total revenue
Option 3: The excess of revenue receipts over revenue expenditure
Option 4: The excess of capital receipts over capital expenditure
Question : The "revenue surplus" in the government budget refers to a situation where:
Option 1: Total revenue is greater than total expenditure
Option 2: Total revenue is equal to total expenditure
Option 3: Total revenue is less than total expenditure
Option 4: Total revenue exceeds total non-tax revenue
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