Question

What is the correct component of the union budget of India?

• A. Revenue budget
• B. Capital budget
• C. Both (A) and (B)
• D. None of these

Hint:

The union budget consists of two parts: the revenue budget for regular income and expenses, and the capital budget for long-term investments and borrowings.

Answer 1

The Correct Option is C

Step 1: Understanding the Union Budget:
The union budget of India is divided into two main components: the revenue budget and the capital budget. The revenue budget deals with the government's revenue and expenditure, while the capital budget addresses long-term investments, loans, and borrowings. Step 2: Analyzing the Options:
- Option (A): The revenue budget includes the government's income from taxes and its expenditure on day-to-day operations.
- Option (B): The capital budget includes long-term capital spending and financial management.
- Option (C): Both the revenue budget and the capital budget are integral parts of the union budget, making this the correct answer.
- Option (D): This is incorrect, as both the revenue and capital budgets are key components of the union budget. Step 3: Conclusion:
The correct answer is option (C), as both the revenue and capital budgets are components of the union budget.