Economics • Indian EconomyEasy
What is the primary purpose of the 'Union Budget' presented annually in the Parliament of India?
A. To outline the government's estimated receipts and expenditures for the upcoming financial year✓ Correct Answer
B. To declare the monetary policy interest rates and reserve requirements for scheduled banks
C. To formulate the statutory minimum support prices for all agricultural crops
D. To regulate foreign direct investment caps across defense and telecommunications sectors
💡 Solution & Explanation
The Union Budget, mandated under Article 112 of the Constitution of India, is an annual financial statement detailing the estimated receipts and expenditures of the central government for the coming financial year. It serves as the primary fiscal instrument for resource allocation, economic growth, and redistribution. Other choices confuse budgetary allocations with monetary policy functions, agricultural price fixation, or sectoral FDI regulations. It reflects the financial roadmap of the nation.
More Economics Indian Economy questions
- What is the primary mandate of the 'Insolvency and Bankruptcy Board of India (IBBI)' established under the…
- Evaluate the long-term fiscal implications of the Sikkim government's universal basic income or targeted…
- What is the primary economic objective of the Sikkim government's promotion of homestay tourism across rural…
- What is the core mandate of the 'Goods and Services Tax (GST) Council' established under Article 279A of the…
- In analyzing the fiscal deficit trends of Himachal Pradesh, which factor frequently exerts severe pressure on…