Question

The classification of budgets into Union Budget and State Budget is based on:

Options

• The nature of receipts and expenditure

• The level of government

• Normal or emergency conditions

• Contribution to economic development

Answer 1

Union Budget and State Budget are classified on the basis of the level of government — the central (Union) level versus the state level. This is distinct from the Revenue/Capital classification, which is based on the nature of receipts and expenditure.