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Budget Related Interview Questions

  1. What is Budget?
    Ans: Budget is the annual statement of estimated receipts and expenditure.

  2. Budget is presented by whom?
    Ans: Budget is presented by Finance Minister.

  3. To whom budget is presented?
    Ans: Budget is presented to legislature for its approval.

  4. Why approval is necessary?
    Ans: Without prior approval, Government cannot incur any expenditure and hence the requirement.

  5. What is vote on account budget?
    Ans: In case, there is no possibility of presenting full budget, under such circumstances vote-on-account budget is presented.

  6. How many types of budgets are there?
    Ans: Threetypes. (i) Surplus Budget (ii) Balanced Budget and (iii) Deficit Budget.

  7. Please explain further?
    Ans: i) In surplus budget total revenues are more than expenditure.
    ii) In balanced budget total revenues and expenditure are equal.
    iii) Deficit budget means, where the total revenues are less than total expenditure.

  8. How does a Government fill the gap in case of deficit budget?
    Ans: Government borrows money from Central Bank, through Treasury Bills. In our Country from 1997, Ways and Means advances has been complemented.

  9. What are the purposes of a budget?
    Ans: There are three purposes:
    i) Economic Stability ii) Economic Growth and iii)Economic Equality

  10. How many types of expenditures are there in a budget?
    Ans: Two types. Plan expenditure and Non-plan expenditure.

  11. What are the terms of market borrowings?
    Ans: Interest payment is the important term and it is a safe investment.

  12. Why it is safe investment?
    Ans: Because it is soverign debt and payment of interest and principal are guaranteed by the state.

  13. How many types of budget deficits are there?
    Ans: These are four types. (i) Revenue Deficit (ii) Budget Deficit (iii) Fiscal Deficit and (iv) Primary Deficit.

  14. Please explain each deficit?
    Ans: i) Difference between revenue receipts and revenue expenditure. (expenditure is more)
    ii)In this total expenditure is more than total receipts.
    iii)This is budget deficit plus market borrowings.
    iv)This is budget deficit minus interest payments.

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