Question : The "Zero-Based Budgeting" approach in the government budget emphasizes:
Option 1: Incremental changes in the budget from the previous year
Option 2: Starting the budgeting process from scratch every year
Option 3: Allocating resources based on historical expenditure patterns
Option 4: Giving priority to capital expenditure over revenue expenditure
Correct Answer: Starting the budgeting process from scratch every year
Solution : The correct answer is (b) Starting the budgeting process from scratch every year.
The "Zero-Based Budgeting" approach in the government budget emphasizes starting the budgeting process from scratch every year. This approach requires government entities to justify and evaluate all budget items and expenses, regardless of whether they have been included in previous budgets.
Under zero-based budgeting, each budget item and program must be justified based on its merits, needs, and expected outcomes. Instead of assuming that previous budget levels are automatically appropriate, this approach requires a thorough examination and justification of every expense.
By starting from zero and evaluating each budget item, zero-based budgeting aims to identify and eliminate unnecessary expenditures, prioritize resources based on current needs, and ensure that each budget item receives adequate scrutiny.
Question : What situation would result if government expenditure exceeds the government revenue in the current account?
Option 1: Deficit budgeting
Option 2: Zero-based budgeting
Option 3: Performance-based budgeting
Option 4: Surplus budgeting
Question : The practice of presenting the government budget in two parts, revenue and capital, is known as ____________.
Option 1: Dual budgeting
Option 3: Performance budgeting
Option 4: Gender-responsive budgeting
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 "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 "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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