Question

The classification of budgets into Revenue Budget and Capital Budget is based on:

Options

• Normal or emergency conditions

• The level of government

• The nature of receipts and expenditure

• Planned development programmes

Answer 1

Revenue Budget and Capital Budget are distinguished on the basis of the nature of receipts and expenditure. The level of government forms the basis of Union vs. State Budget, and planned development programmes form the basis of the historical Plan vs. Non-Plan classification.